Ross Buckley is a Scientia Professor at UNSW Sydney. His research on FinTech is world-leading. He is a board member of Australia’s central bank and chairs the Digital Finance Advisory Panel of Australia’s securities regulator. He has twice been a Fulbright Scholar, at Yale & Duke.

UNSW Sydney is a leading comprehensive university ranked in the top 20 in the world.

The Implications of CBDCs for the US Dollar and the International Financial System
CBDCs will facilitate the direct exchange of many currencies and thus reduce demand for the US dollar as a vehicle currency. This decline in demand for the dollar will reduce the proportion of dollars nations elect to hold in their foreign exchange reserves, thereby exacerbating the current long-term decline in the dollar as the principal global reserve currency. It follows the US will need to issue a wholesale US dollar CBDC for offshore use to have any prospect of maintaining the primacy of the dollar as a global reserve currency and garnering all the benefits this confers.