The US dollar's longstanding dominance as the world's primary reserve currency faces increasing challenges as countries look to reduce their dependence on it. This scrutiny has gained traction due to geopolitical tensions and economic sanctions, prompting nations like Russia to leverage cryptocurrencies, including Bitcoin, in international trade. Although Bitcoin proponents advocate for dedollarization, experts suggest it remains premature. Countries like El Salvador have adopted Bitcoin significantly, yet its volatility and limited mainstream adoption hinder its potential as a true alternative to the dollar. While Bitcoin serves as a reserve asset, the broader adoption of stablecoins, predominantly pegged to the dollar, signals that these digital assets may reinforce, rather than diminish, dollar dominance. Additionally, central bank digital currencies (CBDCs) could disrupt stablecoins' market share. The dollar's global reserve status remains strong despite these developments, attributed to its liquidity and the stability of the US financial system.

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