Digital assets could pose a threat to the supremacy of the US dollar, according to a new report posted on the Federal Reserve’s website.
Researchers at the Fed say that a “shifting payments landscape” and the “rapid growth” of both private sector and government-sanctioned digital currencies could reduce reliance on the dollar.
“Changing consumer and investor preferences, combined with the possibility of new products, could shift the balance of perceived costs and benefits enough at the margin to overcome some of the inertia that helps to maintain the dollar’s leading role.”
Despite these concerns, the Fed doubts that digital assets could ever completely topple the world’s leading fiat currency.
“It is unlikely that technology alone could alter the landscape enough to completely offset the