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Raghuram Rajan thinks digital dollar can threaten monetary sovereignty in poorer countries

Shortpedia

Content Team
Image Credit: Shortpedia

Former Reserve Bank of India governor Raghuram Rajan said the introduction of the digital US dollar may pose a risk to local currencies, specially in poor countries. He, however, accepted that it could help democratize banking in poorer countries. Rajan argued that the introduction of the digital dollar may lead to the local population using the dollar for day-to-day transactions, snatching monetary sovereignty from the country.