New battle over money emerges at Jackson Hole
New battle over money emerges at Jackson Hole newspress_en Sun, 08/30/2026 - 14:21 Business & Economy The influence of a currency has traditionally been measured by its share of central-bank reserves, or by its use in international trade and the pricing of oil and other commodities. That measure is no longer enough. No matter how large the economy behind it, a currency cannot become a global…
A new battle over money is emerging at the Jackson Hole Economic Policy Symposium, held from August 27 to 29 by the Federal Reserve Bank of Kansas City. The symposium focused on financial innovation and its implications for payments and policy. Currency dominance is determined not only by a country's economy but also by the ease with which its currency can be moved, its liquidity, and the presence of safe assets and widely accepted clearing and settlement networks.
The dollar's strength comes from an interconnected system of correspondent banks, clearing houses, foreign-exchange markets, settlement systems, and legal and regulatory institutions. Networks like Visa and Mastercard also have significant power in retail payments, as they set the rules for transactions between banks in different countries.
SWIFT, a secure network for exchanging financial messages, plays a crucial role in this infrastructure, but it does not transfer or settle funds itself. China has attempted to create a parallel payment system, the Cross-Border Interbank Payment System (CIPS), which currently has 210 direct and 1,619 indirect participants. However, China's capital controls and lack of convertible currency limit the renminbi's international reach despite its efficient payment infrastructure.
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