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It will replace the US Dollar by a global digital currency?

the head of The English Central Bank wants to change the global financial system radically. His goal is a digital currency. This would then have the global impo

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It will replace the US Dollar by a global digital currency?

the head of The English Central Bank wants to change the global financial system radically. His goal is a digital currency. This would then have the global importance of the US Dollar now has. A model for this global virtual currency Facebook Libra is.

By Alexandra cons
26. August 2019BTC$10.345,44 1.17%part Facebook Twitter LinkedIn xing mail

Mark Carney, the head of the English Central Bank, and has big goals in terms of the global financial system. For him, the US has used the Dollar as a global reserve currency out. Rather, it must now be replaced by a digital currency in its place. The corresponding proposal, Carney said on 23. August, during a speech at the annual conference of the American Central banks.

In an article of the news magazine Bloomberg Carney is quoted:

The combination of increased economic policy uncertainty, open-hearth protectionism and the fear that further negative shocks could not be offset due to the limited political space appropriately, exacerbating the deflationary tendency in the world economy. Then what to do?

it is Conceivable, here, to replace the US Dollar with another strong currency – but this would solve the basic problem? "In the long term, we need to change the game," said Carney. "If something changes, it should not be a monetary hegemon for another exchange."

Rather, one of the national Central banks, independent currency is to be created.

The end of the dominance of the US dollar

With a digital currency could distribute the financial and political Power to multiple partners. Carney argues, however, that a Central Bank would have to for the development of a common digital currency to be responsible. For Carney, a global digital currency is an independent Alternative. While in the past, the political and monetary policy decisions in a few countries had an enormous impact on the Rest of the world, all of that could change with the introduction of a common virtual currency.

Even if Libra could stand as a model for the currency, see Carney Libra with hurdles associated with:

Either Libra is a success or not. In case of success it would be due to the massive number of potential users is downright relevant to the system and then there is no room for error. The claims will then have a whole other Dimension.

It remains to be seen how Libra will implement the regulatory problems. And the extent to which a global virtual currency to the Libra-plans could be based.

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