The House Subcommittee on National Security, Illicit Finance, and International Financial Institutions, part of the Financial Services Committee, is holding a hearing today on the dominance of the dollar around the world as a reserve currency. The hearing is entitled Dollar Dominance: Preserving the U.S. Dollar’s Status as the Global Reserve Currency.
The dollar is the global reserve currency due to the rule of law, a relatively stable value, and the fact it remains a safe(r) place to park value. It is in the interest of policymakers to maintain this status as it makes it simpler to borrow money at an inexpensive rate while boosting economic activity. Currently, China wants to topple the dollar dominance – although there are many reasons this will probably not happen – at least in the near term.
On the Fintech side, you may expect part of the discussion will focus on a central bank digital currency (CBDC), or a digital dollar, and whether or not this will help or hinder the dollar’s status. Also, there may be a discussion on stablecoins – updated payment rails that can accomplish most of the objectives of a CBDC.
The hearing is affiliated with two acts of legislation, including the Chinese CBDC Prohibition Act and the 21st Century Dollar Act.
Witnesses include:
- Dr. Tyler Goodspeed, Kleinheinz Fellow, Hoover Institution at Stanford University
- Dr. Michael Faulkender, Dean’s Professor of Finance, Robert H. Smith School of Business at the University of Maryland
- Dr. Daniel McDowell, Associate Professor, Maxwell School of Citizenship & Public Affairs at Syracuse University
- The Honorable Marshall Billingslea, Senior Fellow, Hudson Institute
- Dr. Carla Norrlöf, Senior Fellow, The Atlantic Council and Professor, University of Toronto
The hearing will commence at 10 AM, June 7, 2023, and will be live-streamed on the committee website.
