DoubleLine: Digital Currencies Will End The Dollar’s Status As The World’s Reserve Currency

• DoubleLine: Digital Currencies Will End The Dollar’s Status As The World’s Reserve Currency
  by Tyler Durden, https://www.zerohedge.com/
  We most recently described the Fed’s stealthy plan to deposit digital dollars to “each American” during the next crisis as an unprecedented monetary overhaul, but more importantly, a truly stealthy one: there has barely been any media coverage of what may soon be a money transfer by the Fed – a direct stimulus to any and all Americans – bypassing the entire Legislative branch in an attempt to spark inflation after years of losing the war with deflation.
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  That’s why two weeks ago we we delighted to read that none other than Jeff Gundlach’s DoubleLine, one of the highest profile asset managers today, published a paper authored by fixed income portfolio manager Bill Campbell exposing what it called “The Pandora’s Box of Central Bank Digital Currencies”, in which it echoed our claims, writing that “such a mechanism could open veritable floodgates of liquidity into the consumer economy and accelerate the rate of inflation. While central banks have been trying without success to increase inflation for the past decade, the temptation to put CBDCs into effect might be very strong among policymakers. However, CBDCs would not only inject liquidity into the economy but also could accelerate the velocity of money. That one-two punch could bring about far more inflation than central bankers bargain for.”
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  Alas, that was not enough to bring the topic of central bank digital currencies into the mainstream financial media, which is perhaps understandable for two reasons: i) everyone’s attention is glued to the outcome and the implications of the election and ii) most media members think of CBDCs as some useless version of bitcoin, when nothing could be further from the truth.
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  So perhaps in hopes of attracting much needed attention to just how profound the monetary overhaul that is quietly taking place behind the scenes, Doubleline’s resident digital currency expert, Bill Campbell has penned a follow up note to his original report, in which he explains in stark and vivid clarity what is about to happen. In a nutshell, “the world’s central banks and the Bank of International Settlements (BIS) envision a network of multiple cross-border payment systems featuring direct bilateral exchanges in the world’s different currencies. Such a regime would discard the decades-long mediation through the world’s reserve currency, the U.S. dollar.” In short, central banks are preparing to launch cross-border payment systems which represent a new global order which poses a “major threat to the dollar and its status as the world’s reserve currency.”
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