Bank of England Governor: “The dollar needs to be replaced with a single international digital currency”

Bank of England Governor Mark Carney speaks

Bank of England Governor: 'The dollar needs to be replaced with a single international digital currency'

Mark Carney, Governor of the Bank of England, has proposed using a single digital currency controlled by central banks as a reserve currency instead of the US dollar.

Speaking at the annual symposium on economic policy, he spoke about the need to form a new international monetary and financial system.

Carney noted that although the dollar played an important role for most of the 20th century, the increase in economic uncertainty, trade disputes and protectionism in recent years, have a strong impact on its exchange rate and stimulate deflation in the United States, which negatively affects other countries. He also stressed that in the short term, central banks will need to resolve this situation by taking drastic steps..

Chapter The Bank of England has proposed several possible options for replacing the dollar internationally, including the Chinese yuan and a digital currency similar to Facebook’s Libra project, but controlled by a central bank coalition. The second option is he considers it more preferable.

According to Mark Carney, such a synthetic currency will weaken the influence of the US dollar on world trade and the network effects that protect its primacy. Although he did not directly refer to cryptocurrency, he noted that the high cost of electronic payments stimulates innovation and the use of new technologies that offer cheaper and more convenient ways of serving..

Prospect of the proposal Mark Carney is further confirmed by research from the International Monetary Fund. In a recent analytical report by the IMF it is said that digital currencies and cryptocurrencies pegged to the fiat rate are capable of replacing traditional money.

text: Ivan Malichenko, photo: cityam