Opinion: Digital currencies do have the potential to replace the U.S. dollar as the world’s reserve currency

According to China Financial Information Network news, Beihang Distinguished Professor Cai Weide published comments related to the Bank of England report “New Digital Currency”, saying that digital currency can flow at high speed and promote economic development, which was confirmed to be correct by the IMF statistics report in 2020, and the liquidity of digital currency is indeed higher than traditional bank money (more than 20 times faster). For example, the Bitcoin challenge to the US dollar started in November 2020, when Bitcoin’s liquidity already exceeded 98% of the world’s fiat currencies and even rose to 99% by March 2021, seriously challenging the US dollar (the top ranked fiat currencies are so liquid that it was not easy to improve from 98% to 99%). When central banks find that the liquidity of their currencies is the key to developing digital currencies, it also confirms that the CBDC idea proposed by the Bank of England in July 2019 is the right one, and likewise confirms that digital currencies (of whatever kind) do have the potential to replace the US dollar as the world’s reserve currency.

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