How Will De-dollarization Affect Crypto?

May 04, 2023

De-dollarization is when the other countries stop using the US dollar for major international trades and start using other currencies.

Currently, the world’s reserve currency is the US dollar and is also a default currency used for trading oil and other important commodities.

However, recently many countries have announced to ditch the US dollar for international trades. The trend is being led by China and Russia.

China has been working on its digital currency for nearly a decade with which it aims to replace the US dollar.

"If we lose our currency, that's the equivalent of losing a world war," Donald Trump said last month.

Dedollarization could boost cryptocurrencies in the long term even if a fraction of the liquidity is directed towards it.

Some economists have called for a new digital currency that could serve as the world’s reserve currency.

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