Mark Carney, governor of the Bank of England (BOE), has a plan to challenge the dollar’s dominance. | Source: Photo by Chris J Ratcliffe / POOL / AFP
By CCN Markets: Mark Carney wants the US dollar to lose its status as the global reserve currency, pitching the idea that a digital currency could take its place at the Federal Reserve’s annual meeting in Jackson Hole, Wyoming. This is not the first time that someone is calling for the dollar to die and get replaced by a digital currency (such as bitcoin), but the fact that it comes from the Bank of England governor himself is a big deal.
“A digital currency “could dampen the domineering influence of the US #dollar on global trade”, #Carney said in a speech at the gathering of central bankers from around the world in Jackson Hole, Wyoming.” https://t.co/cCqJ05nzoS #crypto #bitcoin #banks #reservecurrency $USD
— Bart van Maarseveen (@bvanmaarseveen) August 24, 2019
Carney wants the dollar’s dominance to end
The Guardian reports that the Bank of England governor was addressing fellow central bankers when he said that dollar-hoarding by governments has led to a decade of ultra-low interest rates and low inflation. He believes that a new digital currency could knock the dollar off its perch. Carney said:
“The dollar’s influence on global financial conditions could similarly decline if a financial architecture developed around the new [digital currency] and it displaced the dollar’s dominance in credit markets. By reducing the influence of the US on the global financial cycle, this would help reduce the volatility of capital flows to emerging market economies.”
The statement from Mark Carney is not surprising.