Morgan Stanley: CBDCs Will Weaken US Dollar Influence

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The influence of the US currency on a global scale is expected to decrease as central banks begin to introduce their own digital tokens, known as CBDCs.

According to analysts at Morgan Stanley, the use of these virtual currencies as payment methods is expected to transform the global financial system.

Additionally, the use of other stablecoins, a type of cryptocurrency tied to a physical asset like a national currency, is also predicted to increase in the coming years. These virtual currencies have already gained popularity in cross-border transactions.

As CBDCs and other virtual currencies become more widely adopted, the process of de-dollarization in the global economy will accelerate significantly, according to the report.

In early October, the Bank of France announced that CBDCs will become a vital part of payment systems in the future. The tokens, which are tied to a country’s national currency, can be used to make purchases.