Ex-Fed Official: Proposals To End USD Dominance With Crypto “Make No Sense”

The ex-fed official of the United States Federal Reserve named Simon Potter is in the crypto news today, stating that the proposals to end the US dollar and its dominance by replacing it with a digital currency make no sense at all.

If we go back in time to las month, we will see that the Governor of the Bank of England Mark Carney was in the news for suggesting to end the US dollar’s dominance by replacing it with a cryptocurrency such as the Facebook stablecoin Libra. At the time, Carney said that he considered this to be a fairly better choice than allowing USD to be replaced by another national currency such as the China renminbi fiat currency.

However, the ex-fed official Potter is featured in the latest cryptocurrencies news for his statement on September 25, when he told BNNBloomberg that Carney’s suggesting that “completely ignores the benefits of having the greenback as a reserve currency.”

“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. 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,” the ex-fed official added.

Even though Potter thinks that it is unlikely for central banks to “ever coordinate around a virtual currency,” private companies might do that.
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He 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.”

As an ex-fed official, Simon Potter is a respected figure in the field of regulation. He is even featured in the Libra coin news today because of his statement about the coin – which according to him – has to be perfect out of the gates.

“It’s either successful or it isn’t. If it’s successful, it becomes systemic, because it would involve a very large number of users. And if you’re a systemic payment system, it’s 5-sigma. You have to be on all the time. You can’t have teething issues. You can’t have people losing money out of their wallets,” Potter concluded with a statement on Libra.