JP Morgan warns: "Dollar hegemony is at risk"
JP Morgan analysts warned of the risk facing the hegemony of the US dollar in the face of the advance of the digital currencies of the central bank (CBDC): “There is no country that has more to lose in terms of the disruptive potential of the digital currency than the United States".
According to a report released by Bloomberg, Josh Younger of JP Morgan and Michael Feroli, an American economist, do not see the dollar going to collapse as a world reserve currency any time soon. However, it has important "fragile" aspects in its domain.
"Commercial liquidation and the SWIFT messaging system could be at risk," reads the report. The specialists speak that an aligned power, as the case of the European Union, can have in view to undermine the US dominance in the global economy, precisely in the payment systems. In particular, the SWIFT system, which suspended access by some Iranian banks in 2018, could have violated the laws of the European body.
According to the main bank of the United States, if countries could circumvent SWIFT, the country would be less able to achieve its geopolitical objectives, which mainly seek to ensure the hegemony of its currency. However, the roaring advance of digital currency projects in China, South Korea, or even Europe could threaten their global dominance.
"Offering a cross-border payment solution built on a digital dollar would be, particularly if it is designed to be minimally detrimental to the structure of the national financial system, a very modest investment to protect a key means of projecting power in the global economy," they noted. analysts.