In the recent many decades- US Dollar played a dominant role in the world. But now the thinking of Mark Carney, Bank of England governer, a central bank-backed digital currency might replace the dollar as the global hedge currency. He is expecting for a new monetary system and international currency. There is a high impact of globalization and several trade conflicts on world economic system so the throne of US dollar should be seized by another one.
The advancement of US economy from cover to cover the entire world affects dollar’s exchange rate which might have excessive effects to the rest of the world because dollar is used in international securities issuance, international trading etc.
Now in this stage the world economy is being rearranged. A suggestion from Carney to a digital currency backed by a central bank and dollar to be replaced. The haughty influence of US dollar on global trade could be worse by an SHC. Actually online payments use digital currencies rather than dollar and this network can crumble up the usage of dollar. Technologies are trying hard to cut down the costs of digital currency payment indeed.
Libra as an example
Facebook, which is taken as big giant, has offered Libra as a payment infrastructure and stablecoin supported by a basket of national currencies. To be successful Libra requires regulatory issues. After the system is adopted by billions of users, the tech giant is developing standards and regulations for this new systematic private payment which must be activated before launching. But still no digital currency is capable to replace US dollar. It is the time to deem that an SHC in IMFS, having challenges, could support better global outcomes.