HomeNewsBRICS De-Dollarization Push Sends Investors Flocking to Monero, Dash, ZCash

BRICS De-Dollarization Push Sends Investors Flocking to Monero, Dash, ZCash

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  • A significant 98% of countries globally are moving towards launching their Central Bank Digital Currency (CBDC), with 130 nations already initiating pilot test runs.
  • Despite global momentum, the US remains hesitant about converting the dollar into a CBDC, especially in light of de-dollarization initiatives from the BRICS nations.

US Dollar’s CBDC Conundrum

The fintech universe stands at a pivotal juncture with the ever-growing gravitation towards Central Bank Digital Currencies (CBDCs). These currencies, designed to represent a digital version of a country’s physical currency, have garnered the attention of nations far and wide, propelling the future of finance into uncharted territories.

The American Stance Amid Global Adaptations

As the BRICS nations—Brazil, Russia, India, China, and South Africa—unveil their ambitious de-dollarization agenda, urging developing nations to reduce their dependency on the US dollar, there’s been a notable question looming: will the United States pivot towards CBDC to preserve the supremacy of the dollar?

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However, Michelle Bowman, one of the central figures of the Federal Reserve’s Board of Governors, seems to have reservations. She expressed skepticism about the necessity of introducing a CBDC variant for the dollar. In her analysis, she elucidated that such a move offers minimal to negligible advantages for the American economy.

She further accentuated that the current financial infrastructure in the US, inclusive of instant payment systems, makes the introduction of a CBDC redundant.

Bowman also underscored potential pitfalls accompanying CBDCs. She alluded to them as

“significant risks and tradeoffs,”

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cautioning that their introduction might wreak havoc on the established banking paradigm. “The value proposition of a U.S. CBDC, from solving financial intricacies to its broader implications, remains veiled in ambiguity. The potential upside, at this juncture, remains nebulous,” Bowman articulated.

In a semblance of concession, the Federal Reserve governor emphasized the significance of in-depth research concerning CBDCs. She advocated for Central Banks globally to stay attuned to CBDC-related advancements, ensuring they remain at the forefront of these financial evolutions.

In the current financial panorama, the US dollar maintains its traditional form, refraining from embracing the CBDC revolution. The nation’s strategic financial direction, at least for now, seems to remain untouched by the BRICS’ drive towards de-dollarization.

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