to top

The end of King Dollar? The forces at play in de-dollarisation

by Alessandro Rocco PietrocolaPosted on

The dollar has been the dominant global reserve currency for decades. However, in recent years, there has been growing discussion about the possibility of de-dollarisation, which refers to the reduction in the use of the US dollar in international trade and finance. In this blog post, we will explore the potential for de-dollarisation in the next 5-10 years.

One of the main factors driving the discussion about de-dollarisation is the growing geopolitical tensions between the US and other countries, particularly China and Russia. These tensions have led some countries to seek alternatives to the US dollar as a means of reducing their dependence on the US-dominated global financial system. For example, China has been promoting the use of the yuan in international trade, and Russia has been diversifying its foreign currency reserves away from the US dollar.
 
Another factor driving de-dollarisation is the increasing use of digital currencies, such as Bitcoin and other cryptocurrencies. While these currencies are not yet widely used in international trade and finance, they have the potential to offer an alternative to the US dollar, particularly in countries where there is a lack of trust in the traditional financial system.
 
Furthermore, the COVID-19 pandemic has highlighted the vulnerability of the global financial system, and many countries are now looking to build more resilient and diversified economies. This may involve reducing their dependence on the US dollar and exploring alternative currencies and financial systems.
 
However, despite these factors, it is unlikely that the US dollar will lose its dominance as the global reserve currency in the next 5-10 years. The US economy remains the largest in the world, and the US dollar is still the most widely used currency in international trade and finance. In addition, many countries still hold large amounts of US dollar reserves, which would be difficult to replace in the short term.
 
Furthermore, the US Federal Reserve has taken steps to maintain the dominance of the US dollar, such as providing liquidity to foreign central banks during the COVID-19 pandemic. The US also has a strong interest in maintaining the dominance of the US dollar, as it allows the country to borrow money at lower interest rates and gives it significant geopolitical influence.
 
In conclusion, while the discussion about de-dollarisation is likely to continue in the coming years, it is unlikely that the US dollar will lose its dominant position as the global reserve currency in the next 5-10 years. However, the growing use of digital currencies and the geopolitical tensions between the US and other countries could lead to a gradual reduction in the use of the US dollar over the longer term.
Alessandro Rocco Pietrocola is an entrepreneur, fintecher, investor, blogger and author based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, UAE, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) and NZ FSPR (Financial Service Provider Register) Approved Person and has great experience as director of regulated companies.
He uses to dedicate part of his life to inspire others and help them achieve the most out of their lives. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.
DO YOU NEED MY TEAM HELP?

Please write me an email with your specific case, my team will be more than happy to help you to find the best solution for your business need or to advice and support you to start a new business venture.

Contact me
City
DO YOU WANT TO JUMP INTO A ONE-ON-ONE CALL WITH ME?

Take your chance to learn from who have done most of the stuff he is talking about for himself and he knows what works – and what doesn’t – in the real world.

Consulting

Book a Wake Up Call with me, if you are moving the first steps in the business world and you wish to learn how to get started!

Wake up call

Book a Check Up Call with me, if you are already in business and you wish to check up your business and leverage my experience to improve your structure or expand your business.

Check up call

Leave a Reply

Your email address will not be published. Required fields are marked *

wa chat