US intelligence warns of a murky future for fiat currencies

Stablecoins and privately issued digital currencies pose a threat to the dollar and to the currencies of US allies. The conclusion is contained in a report by the National Intelligence Council.

In the document titled “Global Trends 2040: A More Contested World,” experts forecast that implementing monetary policy will become more challenging as the ability of central banks to control exchange rates and money supply erodes.

The authors did not name specific cryptocurrencies, but mentioned Facebook’s planned stablecoin Libra (now Diem), as well as the digital yuan and other CBDC projects.

“The financial sector has no immunity to disruption from technological change. Digital currencies are likely to become widespread in the next twenty years.”, — the report states.

Experts stressed that pace will be set by the norms regulators create.

Among other trends through 2040, specialists highlighted rising national debt, the increasing complexity and fragmentation of the trading environment, worsening labour market conditions and the strengthening of corporate power.

Analysts forecast a weakening of the United States’ economic flexibility and slower growth in Asian economies that manage to avoid the ловушку среднего дохода.

In November 2020, the U.S. intelligence community was concerned about China’s dominance in digital currencies.

GlobalTrends_2040 by ForkLog on Scribd

Follow ForkLog news on Twitter!