Soon to be former governor of Bank Of England, Mark Carney has proposed the idea of using a singular digital currency for global trade. According to a Bloomberg report, Carney suggested replacing the dollar with virtual currency to make global business efficient. This proposal has come in the wake of the USA-China trade war that is having an impact on the whole international market.
Speaking at the annual U.S. Federal Reserve’s conference, Carney warned about the economic policy uncertainties and the over-reliance on the dollar of the international market. He believes that the position of the dollar as reserve currency must end and should be replaced by a global digital currency.
Carney suggested the use of a “Synthetic Hegemonic Currency” that could be provided by the public sector through a network of central bank digital currencies. He further added that this could dampen the influence of the U.S. dollar on global trade.
Carney also shared his concern about how globalization and financial integration has made it possible to expand crisis rapidly. Now the monetary policy of the USA has a major impact on other nations than it used to before.