- Saudi Arabia explores alternatives to the petrodollar deal by participating in a China-led CBDC initiative.
- Saudi joins mBridge to reduce dollar dependence.
As a crypto investor with a background in global finance and economics, I’ve closely watched the developments surrounding the petrodollar deal and its potential alternatives. The recent news of Saudi Arabia exploring digital currencies and joining initiatives like mBridge is an intriguing development that could have significant implications for the future of oil transactions and the role of the U.S. dollar in global trade.
As a researcher studying energy markets, I’ve observed that the United States has experienced a remarkable surge in unconventional oil production over the past few years. This development has bolstered our position as a leading global oil supplier and fortified the dominance of the U.S. dollar in international oil transactions.
As an analyst, I’ve observed that the current arrangement between Saudi Arabia and the United States, which has kept the US dollar as the preferred currency for oil transactions (known as the petrodollar system), may not last indefinitely. This agreement, which has been in place for decades, could be nearing its end.
Saudi Arabia’s paradigm shift
Additionally, Saudi Arabia’s involvement in China’s digital currency experiment hints at a potential move toward reducing dependence on the US dollar for international oil trade.
According to Reuters’ report, I, as an analyst following global Central Bank Digital Currencies (CBDCs), would remark that Josh Lipsky, who manages the CBDC tracker at the Atlantic Council in the United States, made some insightful comments.
As a financial analyst, I’m excited to report that the leading cross-border Central Bank Digital Currency (CBDC) initiative has recently welcomed on board a significant member of the G20 economies and the world’s largest oil exporter.
He further elaborated,
As an analyst, I would interpret this as follows: In the upcoming year, you can anticipate a significant expansion of commodity transactions on the platform, moving beyond dollars. This trend was previously in motion between China and Saudi Arabia, but now benefits from innovative technological support.
Saudi Arabia’s joins mBridge: Here’s why?
The BIS declaration aligns with the news that Saudi Arabia’s central bank has joined Project mBridge as a “fully engaged” member.
The Bank for International Settlements (BIS) has advanced its Project mBridge to the minimum viable product (MVP) level, signifying a worldwide expansion.
As a researcher involved in this project, I’m excited about our focus on developing a multicurrency central bank digital currency (CBDC) platform leveraging distributed ledger technology (DLT). This innovative approach will streamline cross-border transactions by enabling near-instant payment settlements.
As a financial analyst, I’d express it this way: In the year 2021, I became part of an exciting collaboration called mBridge, which brought together the monetary authorities of China, Hong Kong, Thailand, and the United Arab Emirates.
The objective of the project was to construct a CBDC (Central Bank Digital Currency) infrastructure supported by numerous central and commercial banks, designed for facilitating swift cross-border payments and settlements. If accomplished, this development could potentially diminish the global dependence on the US dollar for oil transactions.
With Saudi Arabia’s central bank now on board as the latest addition among six full participants, the spotlight on this project continues to expand globally, involving over 26 entities from around the world.
As a crypto investor, I can tell you that these prestigious organizations, such as the International Monetary Fund (IMF), the World Bank, and the European Central Bank (ECB), are taking an active interest in observing the development of this new asset class. They’ll be keeping a close eye on its progression and assessing how it might influence the global financial system.
US chooses a different route
As a crypto investor, I’ve noticed some intriguing developments in the world of central bank digital currencies (CBDCs). Contrary to my expectations, given the US House of Representatives’ recent passing of the CBDC Anti-Surveillance State Act, the Federal Reserve is now barred from issuing a CBDC. This turn of events stands in stark contrast to the more permissive stance I had anticipated from the US regarding CBDCs.
As a crypto investor, I’ve been closely following the developments in the world of central bank digital currencies (CBDCs). The Bank for International Settlements (BIS) recently conducted a survey, and the results were quite striking. In my own words, I was surprised to find out that the percentage of central banks investigating CBDCs has increased from 90% in the previous year to an impressive 94%.
Among the 86 banks polled, there is a notable trend toward preferring wholesale central bank digital currencies (CBDCs) over their retail counterparts in the near future.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- TON PREDICTION. TON cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- HI PREDICTION. HI cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- STG PREDICTION. STG cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
2024-06-19 18:16