Robin Vince, CEO of Bank of New York Mellon, Emphasizes the Dominant Position of the US Dollar Despite Increase in Use of Cryptocurrencies

During an interview with Yahoo Media, Vince commented that digital assets are still new and will not pose a threat to the dominance of the dollar anytime soon.

Bank of New York Mellon is the oldest bank in the United States. In a recent interview with Yahoo Media, the bank's CEO, Robin Vince, discussed the strength of the dollar and the role of digital assets.

Vince highlighted that digital assets are still a new phenomenon in the financial landscape and that their growth does not immediately threaten the dollar's dominant position. He emphasized the importance of viewing the dollar's strength in the context of broader economic trends and policies.

The U.S. Dollar Index (DXY) measures the value of the dollar against a basket of six major currencies, with the euro having the most significant influence. The index is used to gauge the strength of the dollar in the global foreign exchange market.

Despite the increasing popularity of cryptocurrencies, recent data indicates that the dollar remains strong. Among the two largest cryptocurrencies, Bitcoin and Ethereum experienced a significant outflow the previous week.

According to CoinShares, digital asset investment products recorded an outflow of $305 million, with Bitcoin seeing an outflow of $319 million. However, short Bitcoin investment products received inflows of $4.4 million for the second consecutive week, suggesting that investors anticipated a bearish trend in the market.

Vince acknowledged the potential of blockchain, which serves as the foundation for most cryptocurrencies. He highlighted the opportunities presented by blockchain technology for new developments within the financial sector.

The utilization of digital ledgers to capture assets could enhance the efficiency of financial activities and pave the way for new innovations. However, due to the inherent volatility and lack of regulation, cryptocurrencies cannot yet serve as a direct substitute for traditional money.

Vince's comments also touched upon the broader role of cryptocurrencies in the financial system, emphasizing the need for clear regulatory guidelines. Vince highlighted the importance of regulatory clarity for the sustainable growth of digital assets and their integration into the broader financial system.

Without proper regulation, he argued, the volatility and risks associated with cryptocurrencies could undermine their potential. This is evident in the recent regulatory battle between Ripple and the SEC.

Brad Garlinghouse, CEO of Ripple, lamented the lack of clear crypto regulations during their legal battle with the commission. In addition to Vince's discussion, the crypto market is plagued by hacking incidents.

Crypto Alert agents frequently report exploits that result in significant losses for crypto exchanges. For example, WazirX, an Indian crypto exchange, lost around $235M. On Sep 3, Yield protocol Penpie lost $27 million. The vulnerability to security risks is among the major concerns ailing the crypto industry today.

The above is the detailed content of Robin Vince, CEO of Bank of New York Mellon, Emphasizes the Dominant Position of the US Dollar Despite Increase in Use of Cryptocurrencies. For more information, please follow other related articles on the PHP Chinese website!