Dollar Dominance
Members of Congress have launched an initiative to secure continued dominance of the dollar as the globe’s reserve currency, focusing on the extent to which China could over time threaten this via its own CBDC along with strategic financial activities such as its Belt and Roads initiative. Although Chairman Powell has expressed confidence in dollar dominance for the foreseeable future, giving the Fed ample time to consider its CBDC options, this bill makes it clear that some influential Members of Congress are not so certain.