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According to David Birch, fintech guru and author of â€œThe Currency Cold Warâ€, if the U.S. doesnâ€™t ramp up its efforts in the digital currency race, the global dominance of the dollar might soon be under threat.
Such a scenario could find central banks around the world (as well as private companies) launching their own digital currencies â€” Some of which could potentially challenge the dollar in cross border payments and global trade.
Birch feels it is unlikely that any of these competitors will replace the dollar as the worldâ€™s dominant currency, however. According to his vision, we are more likely to see a wide range of currencies coexist, with each representing the interests and values of a specific community:
â€œSuppose there was an Islamic digital currency which had certain characteristics, not interest bearing or this kind of thing. There might be a billion people that want to use that currency.â€
In such a future, the government's control over money could be greatly diminished. Still, governments will need to play a regulatory function over this multitude of currencies which, otherwise, would risk plunging society into chaos:
â€œThere is a reason why we are not in the wild west anymore (...) A better solution to society as a whole might not be unaccountable money.â€