Facebook’s Libra Advocates For The World to Reconsider USD as Global Reserve Currency
Facebook’s Libra has ignited its push to the world to start reconsidering the United States dollar as anchor currency.
At the annual World Economic Forum (WEF) in Davos held on January 23, officials and financial experts discussed one of the most important mechanisms in the global financing system on the ground that the U.S. dollar has become the world’s reserve currency. Thus the discussion was hinged on the benefits or otherwise of making he U.S. dollar the world’s reserve currency.
The panel focused on factors that make the U.S. dollar the world’s dominant payment system and reserve currency, as well as the fact that countries over the globe are trying to reduce their dependency on the dollar.
The Constitution of The Panel
In membership of the panel are a number of prominent officials including Brazil’s Economy Minister Paulo Guedes and Gita Gopinath, chief economist at the International Monetary Fund (IMF). Hosted by Adam Tooze, director of the European Institute at Columbia University.
Also in the panel also are the Portugal’s Finance Minister Mario Centeno and Zhu Ning, a professor of finance at Tsinghua University
Director at IMF’s research department, Gopinath, opened the panel with comments that named Facebook’s cryptocurrency initiative Libra as a major factor that made everyone in global finance reconsider the status of the dollar as anchor currency.
Brazil’s Economy Minister concurred with the statement, adding that new technologies like blockchain are paving the way for future currency that will be digital