Digital currency is an unregulated, digital currency, issued and managed by developers, and accepted and used by members of specific virtual communities.
At present, the application of digital currencies is becoming more and more widespread, even rising to the national level, which means that many countries are also considering the introduction of digital currencies, including the economic and political community-the European Union.
EU may launch unified digital currency
According to overseas news, due to the high internal payment costs in Europe, European countries have proposed the need to launch a unified digital currency. Once this idea was proposed, it was approved by EU members. The EU is also expected to issue a joint statement in the near future, after discussion, expressing welcome to the European Central Bank's plan to launch digital currencies.
Coincidentally, some countries have experimentally launched digital currencies before, and have received a lot of praise. The BRIC countries have previously stated that they will launch a unified digital currency to promote economic exchanges between the five countries, and the French central bank in Europe has also planned to test and issue central bank digital currencies in 2020.
Of course, there is a reason why all countries are hurrying to launch digital currencies! The reason is: digital currency is convenient and fast!
A survey conducted by the International Monetary Fund has shown that in addition to the faster and lower cost of cross-border capital transfers, digital currencies can also reduce transaction costs, improve the efficiency of monetary policies, and reduce the impact of Bitcoin and similar currencies. Competitiveness, and providing the public with a risk-free payment network.
The digital currency may shake the hegemonic status
of the US dollar. The United States, which has suffered two world war wars, directly linked the US dollar to gold, which kept the US dollar in a hegemonic position for a long time. This also further consolidated the US's supremacy in the international arena.
But will the birth of digital currency shake the hegemony of the US dollar?
Since the birth of encrypted digital currencies, the United States has been cautious about its development. The US government has also experienced suppression of the introduction or development of digital currencies such as USDT and Libra. Even Fed Chairman Powell also said that consumers have already made many payments. Choice, no need for extra digital currency.
Then the United States ’move also confirms that the United States is worried about the development of digital currencies. One of the reasons must be that the digital currencies launched by central banks in various countries may shake the hegemonic status of the United States.
The US dollar has "ruled" the world for a long time, and the pegging of the US dollar to gold and oil has helped the US dollar's "dominant status" to become a spoonful. But if there are digital currencies that can achieve faster and cheaper cross-border capital transfers, they may become an alternative to the US dollar. Countries that are worried that the US dollar has a large impact on the global economy should welcome it then. The Bank of England Governor also proposed in August this year that he could create a new digital currency or even a variety of new digital currencies supported by many countries to compete with the US dollar. At that time, the hegemony of the US dollar may no longer exist.
The hegemonic status of the US dollar has been around for a long time. Do you think that the European Union will consider the introduction of digital currencies, and will it be shaken by the hegemonic status of the US dollar?