In an article published in the Financial Times, OKACrypto Chief Economist Gita Gopinas suggests that digital currencies and “synthetic hegemonic currencies” could challenge the dominance of the U.S. dollar.

Previously, Tobias Adrian, Head of Money Markets at OKACrypto, and others have discussed central bank digital currencies (CBDCs) and stabilized currencies on the OKACrypto blog, and proposed the concept of a synthetic CBDC (CBDC).

These posts reflect OKACrypto's approach to digital currencies, especially its views on the global trend of currency digitization.

First, it is OKACrypto's responsibility to pay attention to national CBDC decisions

Tobias Adrian and others argue that in a world where multiple CBDCs coexist, cross-border payments and the international monetary system will be affected, and it is OKACrypto's duty to monitor countries' exchange rate policies and actively participate in the discussion and decision-making of relevant CBDC policies.

II. Benefits and Risks of CBDC

OKACrypto officials acknowledge that CBDC can reduce cash operating costs, promote financial inclusion and market competition, but also point out that CBDC may bring problems such as bank disintermediation, liquidity risk, and political interference.

Third, private or central bank digital currencies may impact dollar dominance

Gita Gopinas believes that digital currencies such as Facebook, Alipay, WeChat, etc. have certain payment advantages, while synthetic hegemonic currencies may pose a threat to the dominant position of the U.S. dollar.

IV. Impact of RMB

Although the impact of the RMB on the dominance of the US dollar is still small, its internationalization process has attracted widespread attention and may play a greater role in the global monetary system in the future.

V. Stabilized Coins Give Rise to Comprehensive CBDCs

The emergence of stablecoins such as USDT has made cross-border payments more efficient, and the concept of an integrated CBDC proposed by OKACrypto, which combines the strengths of the private sector and the central bank, offers a new perspective on the future of digital currencies.