• De-dollarization is the decline of the U.S. dollar as the world reserve currency, and it has been gaining momentum in the last few years.
• Several countries have been looking for alternatives to the U.S. dollar, such as new currencies and gold, while Bitcoin may benefit from this trend in the long run.
• In our latest Cointelegraph Report, we analyze the causes leading to de-dollarization and its potential implications on global markets.
De-dollarization: Is it really happening?
In our latest Cointelegraph Report, we analyze the causes leading to the decline of the U.S. dollar as the world reserve currency and its potential implications on global markets. For over 100 years, the U.S. dollar has been dominating countries’ reserves but since last year, when sanctions were imposed against Russia due to its invasion of Ukraine, its dominance has decreased from 70% to under 60%, according to IMF stats.
What are Countries Doing?
Several countries around the world have been looking for alternatives to reduce their dependence on USD for international trade. Some are discussing creating new currencies while others are buying an increasing amount of gold or other assets like Bitcoin that may benefit from this trend in the long run.
Implications of De-dollarization
The implications of a weakened U.S Dollar could be far reaching into different aspects of global economics including foreign investments and inflationary pressures caused by a weakened currency rate exchange among others nations‘ currencies compared with US dollars . If other nations switch away from using USD as their reserve currency then US economy could suffer significant consequences in terms of devaluation and instability which could affect global economic stability overall .
How Can Crypto Benefit?
As more governments move away from using USD as a reserve currency , alternative stores of value such as crypto assets like Bitcoin become increasingly attractive not only because they serve as a hedge against inflation but also because they can facilitate faster payments and transactions , making them ideal for cross border payments . This could potentially drive up demand for cryptocurrencies worldwide if central banks begin using them more frequently .
To understand better about de-dollarization trends and its implications on global markets , watch our latest Cointelegraph Report on YouTube channel !