Atlantic Council: CBDCs Threaten the Dollar’s Dominance
Central banks around the world are experimenting with digital currencies called cbdcs that threaten the dominance of the United States dollar, the Atlantic Council think tank warned November 16.
“No individual currency needs to replace the U.S. dollar for it to lose its role as the main reserve currency,” the Atlantic Council noted in “CBDCs Will Further Fragment the Global Economy—and Could Threaten the Dollar.” “A gradual shift to multiple alternatives can achieve the same result.”
The Atlantic Council estimates that by the end of this year, central banks representing 98 percent of the world’s gross domestic product will have initiated programs to develop digital currencies. This means that the next few years could see the issuing of digital currencies around the world.
Right now, most countries can trade freely using the U.S. dollar. But as the Atlantic Council noted, “The most likely near-term scenario for cbdc development will see clusters of national cbdcs becoming interoperable only among geopolitically friendly countries—while being ring-fenced against outside state and non-state actors. Indeed, several multi-cbdc cross-border payment test projects have been going on. Generally speaking, fragmentation is the prevailing policy trajectory.”
Today, the primary condition to trade with anyone around the world is access to the U.S. dollar and financial plumbing. In the future this may be different. Digital currencies are starting to change the terms and conditions of world trade.
If a group of nations uses a digital currency instead of the U.S. dollar, it provides greater independence from America and faster processing times. Both factors can serve as a glue to strengthen trade partners. But such a close-knit relationship may come with conditions and make it extremely easy for central banks to exclude unwanted foreign competition and entire nations.
It is noteworthy to see who is going down the digital path and who hesitates. “The current leaders in cbdc development and experimentation include the euro area, the UK, Sweden, Singapore, China and several developing countries,” the Atlantic Council noted. “The United States remains conspicuous by its absence.”
Next to the U.S. dollar, the euro is the most-used currency in the world. The eurozone’s extensive regulatory system also increase its chances of becoming a trusted trading partner in the digital age. The Governing Council of the European Central Bank announced on October 18 that the European Union’s digital euro project is moving into the “preparation phase.” These preparations will allow the EU to suddenly introduce a cbdc and realign its trade relationships.
The Trumpet warned in 2021: “If central banks start issuing digital money, the dollar may face real competition as the world’s dominant currency.” That prediction was based on a key end-time prophecy in Isaiah 23. This speaks of an alliance that includes Tyre, the commercial center of the modern-day Europe; Tarshish, modern-day Japan; and Kittim, modern-day China (for more information, read “The Great ‘Mart of Nations’”).
Other Bible prophecies, such as Leviticus 26 and Deuteronomy 28, show that the nations of Israel (the United States and Britain primarily) will be besieged in their gates, until their high and fenced walls come down. This shows that the Isaiah 23 mart of nations is an anti-American alliance. Such an alliance would obviously have no interest trading in dollars. This means the process of international trade that the dollar currently provides would have to be replaced. A Blockchain Services Network allowing digital yuan, digital yen and digital euros to be electronically traded would open up a myriad of alternative reserve currency options.
—“Will Blockchain Block Out America?”
Given America’s rising debt of over $30 trillion, more and more nations are keen to separate themselves from the U.S. system. Such a separation would be catastrophic for the U.S. economy.
While economists dispute where these trends are heading, the Bible reveals the answer. To learn more, read “Will Blockchain Block Out America?”