According to the American investment bank, the adoption and spread of CBDCs could reduce the use of the US dollar and traditional payment systems like SWIFT in international transactions.
A study conducted by Andrew Peel, executive director and head of digital asset markets at Morgan Stanley, has highlighted the potential implications of the launch of CBDCs on the currently dominant role of the US dollar in the international payments sector.
According to Peel, the implementation of CBDCs could establish a new standard for international payments, reducing dependence on the dollar and traditional payment structures like SWIFT.
“As CBDCs become more widely adopted and technologically advanced, they hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar.“
The effects of stablecoins on traditional finance
Peel also emphasizes the potential role of stablecoins pegged to the US dollar in global finance. According to him, stablecoins could be the ‘killer app’ for the widespread adoption of cryptocurrencies.
“Rather than challenge the dollar’s dominance, their continued evolution and growing acceptance by mainstream financial entities underscore their potential to significantly alter the landscape of global finance and in fact reinforce the dollar as the dominant global currency.”
