Cryptocurrencies
Ex-Fed Official Takes Aim at Bank of England’s Crypto Proposal
- Simon Potter spoke publicly for first time since N.Y. Fed exit
- Plan to overtake dollar ignores status quo’s benefits, he says
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Bank of England Governor Mark Carney’s plan to end the dollar’s dominance in the global financial system ignores the benefits of having the greenback as a reserve currency, according to former senior Federal Reserve official Simon Potter.
The dollar should eventually be replaced by something like Facebook Inc.’s proposed Libra cryptocurrency, Carney said last month. While the Bank of England chief bemoaned the greenback’s “domineering influence” on trade, he failed to take into account how the dollar’s status has benefited other countries, Potter said at a Peterson Institute for International Economics event in New York on Wednesday.