And WCBDC would allow foreign banks to maintain reservations in tokenized dollarsfacilitating more efficient and safe international transactions. This digitalization could reinforce the hegemony of the dollar by increasing its accessibility and utility in global trade.
In addition, the programmable nature of a digital currency would allow better transaction supervision, strengthening the ability of the United States to impose sanctions and combat terrorism financing.
It could also Facilitate treasure debt issuance when expanding the investor base with direct access to digital dollars.
Vincent Arnold, researcher at the Yale Financial Stability Program, argues in a recent interview for The Financial Times that the creation of a WCBDC is A proactive response to the emerging challenges facing the dollar abroad.
Although it recognizes the usefulness of the stablecoins in the current financial system, Arnold argues that they cannot completely replace the money issued by the Central Bank. Points out that, like the Eurodollars market, The money created privately can complement, but not replace, to the official money.
Key issues about design and access
He Design of a WCBDC would imply critical decisions On who would have access and how the associated risks would be managed. A proposal is to implement a stepped access system, where commercial banks in countries with less developed financial systems or with deficient banking regulations would have limited access, while institutions in nations with solid regulatory frameworks could enjoy greater access.
The ability to program digital tokens would allow to establish specific parameters, such as Restrictions to avoid transactions with entities in sanctioned countries, adding an additional layer of control and safety.
Cooperation with foreign monetary authorities to properly supervise and regulate the use of WCBDC. Since the Federal Reserve does not directly supervise offshore banks, this collaboration would be vital to guarantee stability and prevent illegal activities.
In addition, the implementation of a formal backup system, possibly through SWAP lines or repair facilities with foreign central banks, would be necessary to provide liquidity in emergency situations, similar to the interventions that the Federal Reserve has made in the past in the Eurodollars market.
What potential dangers could have?
Despite its advantagesthe introduction of a WCBDC entails significant risks. One of the main ones is the possibility of volatile capital flows, especially in emerging markets. The ease of conversion from local currencies to digital dollars could destabilize economies if citizens migrate massively to the digital dollarweakening national currencies and complicating local monetary policy.
In addition, by offering a WCBDC, The Federal Reserve could be seen in the last instance lender position for a global network of financial institutionsexpanding its responsibility beyond the US banking system. This could generate political and financial tensions, especially if it is necessary to pay interest on reserves maintained by foreign entities.
The bureaucratic complexity of managing such a broad and diverse system is also a challenge. The need for coordinated multinational supervision and regulation could complicate the implementation and maintenance of a WCBDC. In addition, the remuneration of these digital reserves, in a context where the Federal Reserve pays interests on reserves, It could generate debates about the equity and sustainability of such policies.
Geopolitical context and international competition
China’s initiative with its cross -border digital yuan has already pushed the US to put on the table the development of a WCBDC so as not to be left behind in the evolution of international digital currencies.
The lack of action could erode the dominant position of the dollar in the global financial system, especially if other important economies adopt and promote their own digital currencies.
As the global financial panorama continues to evolve, it is imperative for the United States that proactively considers such innovations with The goal of maintaining its so -a -chamber of economic leadership.