According to Gita Gopinath, chief economist of the International Monetary Fund (IMF), digital currencies have gained importance in recent years, although those options will not move the US dollar from its seat.
"Improvements in payment technology may have reduced the cost of changing cash to digital payments, but there is no evidence that they have done much to reduce travel costs between currencies," Gopinath said in an opinion article for the Financial Times in January. 6, adding:
Regulation and adoption of digital currencies.
In June 2019, Facebook launched a technical document for its currency Balance, a digital asset supported by a set of financial assets and currencies. Since then, the project has faced a major regulatory response.
In addition, countries like China have entered the ring, seeking to launch their own national digital currencies.
"While these possibilities are intriguing, they are unlikely in the short term," wrote Gopinath.
Resilience USD
In terms of justification, Gopinath mentioned the importance of the US dollar in global trade and banking, and a growing increase in the use of the USD, a type of domino effect.
The economist compared digital currencies to the euro, which could not exceed the US dollar, and noted the large number of aspects that contribute to the success and dominance of national currency.
Gopinath also highlighted the institutions and guarantees of investors within the US dollar, strengthening its strength.
In summary, Gopinath made it clear throughout his article that too many complicated factors are currently hampering a digital currency that seeks to replace the US dollar.
These waters may soon be tested, as IBM predicts that the central bank's digital currency will arrive in five years, according to a report by Cointelegraph.
Cointelegraph contacted Gopinath but received no response at the time of publication. This article will be updated accordingly upon receipt of a response.
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