De-dollarization, the diminishing role of the United States dollar as the world’s primary reserve currency, is in progress and gaining traction.
For more than a century, the U.S. dollar has been the global reserve currency, meaning it is the primary foreign currency held by central banks for conducting international transactions and paying off international debt.
In the last two decades, the International Monetary Fund has reported that the dollar’s share of countries’ reserves has declined from 70% to less than 60%.
Since last year, the U.S. and its allies have been increasing the rate at which they froze Russia’s dollar reserve in response to the country’s invasion of Ukraine.
Since then, numerous nations have been exploring alternatives to the U.S. dollar. Some are debating the development of new currencies for global trade, while others are accumulating a growing quantity of gold to spread out their reserves.
Bitcoin (BTC), an asset that has many of the features of gold, could also potentially reap rewards in the long term from this trend.
To gain insight into the reasons for and effects of the weakening of the U.S. dollar, as well as the assets likely to benefit from it, be sure to watch the latest Cointelegraph Report on our YouTube channel and don’t forget to subscribe!
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