June 26, 2022
Federal Reserve Chair Jerome Powell admitted in a speech that the American dollar is at risk of losing its standing as the world’s preeminent currency. He made this admission as he pushed for the United States to create a digital currency that he said would preserve the dollar’s status.
Powell made this claim during a speech at the “International Roles of the U.S. Dollar” conference hosted by the Fed. Powell warned that America needs to develop its own central bank digital currency (CBDC) to compete with similar digital currency in other countries.
“Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future,” said Powell. “Most major economies already have or are in the process of developing instant, 24/7 payments… And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. CBDC could also potentially help maintain the dollar’s international standing.”
Josh Sigurdson, host of “World Alternative Media,” warned that the creation of an American CBDC is part of the modus operandi of the Great Reset agenda, and people should pay more attention to Powell’s admission that the dollar could collapse.
“It says a lot when the Fed chair is admitting that the U.S. dollar may possibly face being depegged as a world reserve currency,” he said. “Just even alluding to it slightly is something that never happens unless it is like the end of the line [for the dollar] … and if that happens, obviously, we’ll see hyperinflation.” (Related: Economist: America is about to enter next stage of inflation, which will be so much worse.)
Fed claims U.S. dollar could lose dominance if country doesn’t develop CBDC
Powell’s statements regarding a CBDC come after its four-month consultation with the public about the possibility of creating a digital dollar. The Fed itself is divided on the issue, with Vice Chair Lael Brainard being a key supporter and Fed Gov. Chris Waller making a case against an American CBDC.
“As we consider feedback … we will be thinking not just about the current state of the world, but also how the global financial system might evolve over the next five to 10 years,” said Powell.
America is far behind in developing a CBDC. At least 10 countries have already launched their own versions of a central bank-backed digital currency. Another 15 nations have launched CBDCs in their pilot stages and another 105 countries are exploring the option, according to the Atlantic Council, an American international affairs think tank.
The Atlantic Council stated that these 105 countries represent over 95 percent of global GDP, and that two years ago only 35 countries were exploring the option of creating a CBDC.
“A new high of 50 countries are in an advanced phase of exploration (development, pilot or launch),” the think tank wrote.
The Fed is concerned that the dollar could lose its international dominance to a country like China, which is also developing its own CBDC.
Learn more about the future of the American dollar at CurrencyCrash.news.
Watch this episode of “World Alternative Media” talking about Powell’s admission that the U.S. dollar is at risk of collapsing.
More related stories: Central banks trying to combat inflation as Europe and US face likelihood of recession.