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Bank of England Governor Mark Carney has an idea to end the dollar’s dominance by creating a central bank cryptocurrency.

It has been said that the Bank of England’s Governor  bemoaned the greenback’s “domineering influence” on trade, but he failed to take into account how the dollar’s status has benefited other countries, Potter said at a Peterson Institute for International Economics event in New York on Wednesday.

“I see no argument that makes sense to have something that complicated out there when you have large, liquid capital markets in the U.S.,” said the former NY Fed Cheif    “Not having one currency that you can basically price things and have a deep market in, that makes life much harder for the global economy.”

The dollar’s role in the global financial system is very important and vast: other countries use it to pay international debts, and it commands the lion’s share of central banks’ foreign-exchange reserves. That status has afforded the U.S. several advantages: foreign investors have flocked to dollar-denominated assets, helping America keep a lid on its borrowing costs. (source  www.bnnbloomberg.ca)

Potter then went on to talk about private companies setting up their own cryptocurrencies.

“Central banks should be very concerned about the private sector doing this,” Potter said. A nation’s control of its currency “is designed to protect people and get good outcomes. The private sector is much more interested in selling products.”

The dollar’s role in the financial system is vast. Global debt is denominated in USD and the world’s commodities if the system is changed it would take a massive overhaul by the worlds governing bodies and central banks.