Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro
No Result
View All Result
The Daily Hodl
No Result
View All Result

Digital Currencies Pose Critical Risks to Dollar Dominance and SWIFT: JPMorgan Analysts

by Daily Hodl Staff
May 23, 2020
in Blockchain
‏‏‎ ‏‏‎ ‏‏‎ ‏‏‎

JPMorgan analysts warn that the rise of digital currencies may dampen the dominance of the US dollar and  SWIFT.

As the world’s reserve currency, the dollar gives the United States geopolitical power and easy access to capital, allowing the country to maintain its status as the world’s leading economy and political power.

Analysts at JPMorgan, including Josh Younger, head of US interest-rate derivatives strategy, and Michael Feroli, chief US economist, write in their report as cited in Bloomberg,

“There is no country with more to lose from the disruptive potential of digital currency than the United States. This revolves primarily around U.S. dollar hegemony. Issuing the global reserve currency and the medium of exchange for international trade in commodities, goods, and services conveys immense advantages.”

With SWIFT (Society for Worldwide Interbank Financial Telecommunication) facilitating global and local financial flows through its messaging system and with the dollar serving as the world reserve currency, the analysts indicate that the US will face difficulties in implementing sanctions and terrorist-financing measures.

The analysts also suggest that the US should invest in developing a digital dollar to maintain its place in the global economy.

“Offering a cross-border payments solution built on top of a digital dollar would, particularly if designed to be minimally disruptive to the structure of the domestic financial system, be a very modest investment to protect a key means to project power in the global economy. For high-income countries and the U.S. in particular, digital currency is an exercise in geopolitical risk management.”

According to Aditi Kumar and Eric Rosenbach of Harvard Kennedy School’s Belfer Center,

“Most cross-border payments—nearly $5 trillion per day—are directed through SWIFT messages, and a significant portion are routed through U.S. correspondent banks. Information sharing with these institutions allows U.S. authorities to identify illicit activity, such as money laundering and terrorist financing…

But perhaps more important, this system gives the United States enormous leverage over other states, since sanctions that cut a country off from this network are usually a death sentence.”

China and other countries are pushing to develop and test national digital currencies that can leverage digital ledger technology, creating innovative global payment platforms designed to rival the status quo.

While the JPMorgan report concludes that the US dollar is not at risk of being imminently replaced as the world’s reserve currency, reports Bloomberg, emerging digital currencies could more easily unseat SWIFT and the legacy systems that handle trade settlements.



Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Nik Waller Productions

Submit a Press Release

Crypto Livewire – Press Releases

  • How Traders Are Gaining by Holding Crypto: Staking Tron (TRX) and Cardano (ADA)
    January 21, 2021
  • QuiverX to Integrate Chainlink Proof of Reserve To Power Transparent, Decentralized Crowdfunding
    January 15, 2021
  • The Online Family Office and High Net Worth Blockchain Conference
    December 22, 2020
  • How Blockchain Empowers Wuhan’s Digital Economy Growth – World Blockchain Conference
    December 14, 2020
  • SnapEx Adds LINK, BNB and TRX Alongside Sign-Up Bonus on a Sleek New App
    December 11, 2020
Submit a Guest Post
Bitcoin
$30,777.00
$30,777.00
11.02%
Ethereum
$1,154.97
$1,154.97
13.16%
XRP
$0.267216
$0.267216
9.72%
Litecoin
$134.63
$134.63
7.23%
Bitcoin Cash
$415.54
$415.54
14.43%

Spotlight

  • Ripple Executive Says He Recovered Massive Bitcoin Stash Lost in Crypto Casino
    January 16, 2021
  • Airdrop Madness Coming in 2021, Says Crypto Trader – Here’s How to Prepare for Potential Deluge of Free Crypto
    January 20, 2021
  • Unprecedented Crush of Wealthy Investors Are Flocking to Bitcoin, According to On-Chain Analyst Willy Woo
    January 17, 2021
  • Brian Brooks Says Crypto, DeFi and Stablecoins Necessary as Money Supply Goes to the Moon
    January 21, 2021

DON’T MISS A BEAT

Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options

By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.

Check your inbox for confirmation email.

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX • Explore • Futuremash •
Crypto Livewire

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2020 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • CRYPTO LIVEWIRE
    • Latest
    • Press Releases
    • Sponsored Posts
    • Submit Your Content
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EXPLORE
    • eToro

© 2020 The Daily Hodl

We use cookies to give you the best online experience possible. Continue browsing if you are happy with that, or see how to manage cookies.