HomeNewsBitcoin: More Countries Moving Away From USD as Reserve Currency - Did...

Bitcoin: More Countries Moving Away From USD as Reserve Currency – Did China Just Decide to Move to BTC? Report

- Advertisement -
  • Former President Trump warns of the dire consequences for the U.S. if China successfully undermines the U.S. dollar’s global dominance.
  • De-dollarization is a growing trend, as multiple countries move away from the dollar for international trade and to Bitcoin instead.

China’s Efforts to Undermine the U.S. Dollar

Former U.S. President Donald Trump has raised an alarm about China’s efforts to challenge the U.S. dollar’s global dominance, saying the loss of currency’s supremacy would be akin to losing a world war.

Trump’s comments came amidst a growing trend of de-dollarization, with several countries shifting away from the dollar for international trade. Trump emphasized China’s intentions to change the global currency standard and warned that if the U.S. loses its currency dominance, it would become a second-tier country, losing influence over nations such as Brazil, Colombia, Iran, and Russia moving to Bitcoin.

- Advertisement -

Growing Trend of De-dollarization

Multiple events have threatened the U.S. dollar’s position as the primary medium of exchange in international trade and the backbone of most countries’ foreign exchange reserves.

The trend toward de-dollarization started with U.S.-led sanctions against Russia following its annexation of Crimea in 2014 and escalated with Russia’s invasion of Ukraine in 2022. As a result, several countries have started reducing the dollar’s share in their trade and foreign exchange reserves.

On March 29, 2022, Brazil and China struck a deal to replace the dollar with their own currencies—the yuan and the real—for bilateral commerce, which marks a significant milestone in China’s campaign to internationalize the yuan and challenge the dollar’s supremacy.

- Advertisement -

Dollar Supremacy Under Threat

The trend of de-dollarization has been driven by Russia and China, both directly affected by U.S. sanctions and economic rivalry. However, it has gained momentum with the involvement of Saudi Arabia, a key guarantor of dollar payments in petroleum deals, which has historically underpinned the currency’s dominance.

Saudi Arabia, Russia, and China have divested from U.S. treasury bonds, reducing the dollar’s share in their trade and foreign exchange reserves. Moreover, Saudi Arabia and China have been discussing the possibility of using yuan for oil purchases, and the first instance of yuan being used for an LNG trade has taken place.

Risks and Ramifications If the U.S. dollar loses its status as the world’s dominant currency, it could pose risks to the nation’s global influence and economic stability. The trend of de-dollarization is a cause for concern as it represents a shift in the balance of power on the global stage. The growing trend of de-dollarization could have severe consequences for the U.S. if it continues.

- Advertisement -
Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
- Advertisment -spot_img