Morgan Stanley: Bitcoin and CBDCs Threaten US Dollar's Dominance as Global Currency

Morgan Stanley's Head of Digital Assets, Andrew Peel, has warned that the increasing popularity and adoption of cryptocurrencies like Bitcoin, as well as the development of Central Bank Digital Currencies (CBDCs), could threaten the dominance of the US dollar as a global currency. Peel highlighted the potential paradigm shift in the way people view and interact with digital assets as a threat to the dollar's status. He also noted that CBDCs could establish a unified standard for cross-border payments, potentially diminishing the reliance on traditional intermediaries like SWIFT and dominant currencies like the dollar. Despite this, Peel acknowledged the advantages of CBDCs, including their potential to support innovation by automating transactions using smart contracts.