- Foreign CBDCs and stablecoins don’t threaten the US$, says Fed vice-chair.
- He also believes Bitcoin is not a threat as it lacks mainstream support.
- However, he believes that a dollar-pegged digital currency would support the fiat.
A US Federal Reserve Governor says neither dollar-pegged stablecoins nor foreign CBDC can threaten the US dollar supremacy.
The vice-chair of supervision of the Federal Reserve Board of Governors Randal Quarles made the comments at the annual Utah Bankers Association Convention on Monday. Quarles also talked about the size of the US economy and the country’s strong trade partnerships. He stated that these provide a strong backing for the dollar’s position.
As such, the Fed official believes even foreign-issued digital currencies are no threat to the top fiat currency. Quarles also noted,
“It is inevitable that as the global economy and financial system continue to evolve, some foreign currencies (including some foreign CBCDs) will be used more in international transactions than they currently are. It seems unlikely, however, that the dollarR...This article was first published on coinquora.com