Former US Fed spokesman Simon Potter said he saw no reason to replace the dollar in international payments with digital currency. Such a plan was previously expressed by the Chairman of the Bank of England, Mark Carney, reports BNN Bloomberg .
“I don’t see any sound arguments in favor of something so complicated if we have huge and highly liquid markets in the USA. If there is no single currency with a deep market for valuing things, it will only complicate the life of the global economy, ” Potter concluded.
Currently, other countries use the US dollar to pay foreign debts and to replenish foreign exchange reserves. International settlements are also made in dollars, which makes assets denominated in this currency extremely attractive to investors.
Potter is convinced that central banks are unlikely to coordinate the development of a single digital currency.
“The state is committed to protecting people through currency, and the private sector is to sell goods,” he cautioned, alluding to Facebook's Libra.
On the same day, Calibra CEO David Marcus explained why Libra developers chose blockchain rather than existing solutions.
I just published "Why building a new protocol for money is the only way to truly change the game for people" https://t.co/6tMjANxKc8
– David Marcus (@davidmarcus) September 25, 2019
“If you build this system on top of existing rails and on the basis of non-interoperable payment systems, this will not reduce costs, will not make the financial system more open, and will not push the market to innovate.”
Benua Kure, head of the G7 stablecoins working group in comments to the German Bundestag, emphasized that digital currencies like Libra can solve key flaws in today's financial architecture, but can also threaten the monetary sovereignty of states. He added that his group will provide recommendations on the regulation of such developments at the summit of the International Monetary Fund (IMF) and the World Bank, which will be held from October 14 to 20.
Consumer demand for fast, reliable and cheap cross-border payments is bound to grow further in coming years and policymakers & central banks should respond – https://t.co/eW1WYzu00B pic.twitter.com/jG7nx4XZd5
– Bank for International Settlements (@BIS_org) September 25, 2019
Earlier, France and Germany said they would block the development of Libra.
Germany has already approved the relevant legislation.
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