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- According to JP Morgan Chase & Co., as the central bank digital currency idea started gripping the market, the U.S. needs to pay focus.
- A warning from the analyst at the US largest bank, JP Morgan Chase reported by Bloomberg today about the digital currencies.
- They showed suspending SWIFT access for some Iranian banks in 2018 that possibly violate EU laws.
According to JP Morgan Chase & Co., as the central bank digital currency idea started gripping the market, the U.S. needs to pay focus. Else, there will be a risk of losing a major part of its geopolitical power. JP Morgan reveals a potential disruption of Digital Currencies.
A warning from the analysts at the US largest bank, JP Morgan Chase reported by Bloomberg today, about the digital currencies.
Digital Currencies Will Affect US More Than Any Other Country
As per the report, the disrupting potential of digital currency can affect US more than any other country according to JP Morgan.
However, this will mainly hover around the US dollar authority. The analysts further added this is one of the reasonable issues for the central banks to launch digital currencies. Although, they are less possible to have a transformative impact than some have hoped.
Further, there could be a risk for “more fragile” features of dollar dominance. That included in trade settlement and the SWIFT messaging system. It is also possible that the Europian Union may want to reduce U.S. control over global payment systems.
CBDC to End The Dollar Dominance
Moreover, they showed suspending SWIFT access for some Iranian banks in 2018, possibly be a violation of EU laws. This also caused issues with the European alliance. Where the finance minister failed to exempt the cross-border payments network from the restrictions.
If other countries avoid the SWIFT system and the dollar’s domination, there will be problems for the US to carry out goals in sanctions.
Chairman Jerome Powell notified in February the Federal Reserve is monitoring at the issues pertaining to a digital currency. Whereas making no commitments.
