Speaking publicly for the first time since N.Y. Fed exit, Simon Potter notes there’s no point of using crypto to replace US Dollar. It’s quite true that many people in recent time criticized the dollar’s dominance due to various economic and political scenario, Potter seems to have a different approach to the global currency, USD.
It’s worth mentioning that people around the world are prioritizing crypto to end dollar dominance, in fact, Mark Carney, the Governor of the Bank of England previously suggested that something like Libra would eventually replace the Dollar. Mr.Carney’s key concern with this point highlighted crypto’s use-cases to curb the Dollar’s domineering influence on trade. However, the statement wasn’t well-received by former Fed official Simon Potter who said “Carney’s assumption on Crypto v/s Dollar failed to consider how dollar’s status has benefited other countries.
At the Peterson Institute for International Economics event in New York on Sep 25, Potter strongly argues that ending US dollar dominance for crypto makes no sense.
“I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S.,” Potter said. Not having one currency that you can basically price things and have a deep market in, that makes life much harder for the global economy.”
Carney believes that at some point of time, the central bank has to pay attention to developing digital currency reserves if they expect a change in monetary environment. Potter remarked that there’s no certainty for central banks to ever coordinate around virtual currency. With that, he quickly claimed, private companies might. Continuing the similar note, Potter said;
“Central banks should be very concerned about the private sector doing this. A nation’s control of its currency is designed to protect people and get good outcomes. The private sector is much more interested in selling products.”
Image Source – SCMP