Crypto could threaten U.S. geopolitical power: JPMorgan
22 May 2020
The largest bank in the U.S. has said that the rise in influence of cryptocurrencies could remove geopolitical power from America.
“There is no country with more to lose from the disruptive potential of digital currency than the United States,” reads the report from JPMorgan Chase. “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.”
The bank went on to stress that “digital currency is an exercise in geopolitical risk management” for the U.S.
The report’s authors said: “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.”
Earlier this year Coin Telegraph featured an article about the approach of Judy Shelton, a nominee for the U.S. Federal Reserve board of governors.
Ms Shelton has pushed for a future digital dollar’s potential in helping to “preserve the primacy of the dollar worldwide” and an option she believes the U.S. is “compelled to think about.”
On Sunday she told reporters that a “futuristic” version of the gold standard could involve a digital currency aspect. “Central banks are not serving the private sector in providing that reliable unit of account under the gold standard, you did have that stability, and I think that’s what’s missing it could be used in a very ‘cryptocurrency way’.”