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International New and Market Update: Rise of cryptocurrencies, and more.

International New and Market Update: Rise of cryptocurrencies, and more

The rise of cryptocurrencies could challenge the dominance of the U.S. dollar, according to a new Fed paper

The U.S. dollar’s dominant role in global markets is likely to continue, but the rapid rise of cryptocurrencies could threaten that status, according to a new paper from the Federal Reserve. Private digital currencies such as Bitcoin and Ether, as well as government-backed currencies, could reduce reliance on the US dollar, Fed economists Carol Bertaut, Bastian von Beschwitz and Stephanie Curcuru write in their paper, “The International Role of the US Dollar.” They argue that consumer and investor preferences are changing and that new products could shift the balance between perceived costs and benefits.

Evergrande has reportedly missed bond payments recently as the developer struggles to stave off a default

Evergrande continued to falter this week as the vulnerable real estate developer missed a key payment deadline, according to a report from Bloomberg. The report, citing people familiar with the matter, said a Chinese company co-owned by Evergrande called Jumbo Fortune Enterprises missed a $260 million bond payment. The news sent Evergrande’s bonds plummeting to new lows – they now trade at less than a quarter per dollar. Exact details about the privately issued bond were hard to come by, but the incident signaled to markets that a partial default is more likely than previously thought. Observers have been wondering for weeks whether the Chinese government will step in to prop up Evergrande after urging the company to avoid a short-term default.

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