JPMorgan Warns About Crypto DangersJudy Rubio
According to JPMorgan’s representatives, there are several major dangers that digital currencies may have. They bring a few threats that would seriously harm the geopolitical power of the United States. The mass media report that the company cannot name any other country that would suffer from the destroying power and potential that is hidden in digital currencies than the United States of America. The team’s analysts have carried out research and studies to foresee and predict how cryptocurrencies can affect the country’s geopolitical influence.
The largest bank in the USA warns the government about potential threats and risks and the bank’s analysts are ready to give evidence to prove that what they say is right. They reported and commented on the possible outcome – Josh Younger is one of those who have worked in the industry for many years and he understands how digital currency may affect the global economy, including that of the USA. Another expert, Michael Feroli, noted that what is occurring is spinning around the fiat currency and its hegemony. He says that issuing the dollar and establishing the medium of exchange targeting international trade focusing on services has many pluses. They include goods besides various commodities and convey great potential. What experts see has advantages that are more immense than we may think.
Fragile Links That Affect the Global Dollar System
Some links in the systems are too fragile. The fact is that specialists cannot anticipate the U.S. dollar losing its current status. It is still a global reserve currency. However, the system itself is not perfect and some of its links are weak and affect the dollar’s dominance. This relates to trade settlement. Experts also say that they influence the SWIFT messaging system.
The mentioned system was a major lever. It was used as an instrument to impose sanctions on the regime in Iran. What happened two years ago was that the authorities suspended access for banks in Iran, which was the main reason for additional tension with the EU bloc. Nevertheless, finance ministers made every attempt to improve the situation, but their effort was vain. All of the measures they applied did not help them and they eventually failed. The ministers wanted to solve issues linked to cross-border payments. Unfortunately, they didn’t manage to exempt the network from the restrictions. Economists argued and tried to prove that the SWIFT suspension is not right since it violates the laws set by the European Community.
It would have been much more challenging for the USA to achieve its goals and develop a geopolitical strategy, if countries could ignore SWIFT. The officials explain this by the dominance that the U.S. has on a global scale.
The Importance of Digital Currencies
Analysts believe that it’s time to take the initiative and realize the importance that digital currencies have. For the USA, digital currencies are essential if their mission is to manage geopolitical risks. Making the potential dangers less obvious does not solely depend on digital currencies. Nevertheless, they are still key components since they allow cross-border payments. It’s a solution that would help the fiat currency since digital currencies are much less disruptive and cannot harm the domestic financial system. The country needs something as a relatively modest investment. This, in turn, would help protect a key means to project power in the global economy.
According to the most recent reports, Judy Shelton seems to support the idea. The advisor has similar views and believes that the rest members of the board, governors as well as other authorities should consider the new possibilities.
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