Is de-dollarization occurring?

De-dollarization, which refers to the reduction of the United States dollar’s role as the world’s main reserve currency, is happening and is becoming more prevalent.

For more than a century, the U.S. dollar has been the world’s reserve currency, indicating that it has been the primary foreign currency held by central banks to conduct international transactions and settle international debts.

However, in the last two decades, the dollar’s dominance in countries’ reserves has decreased from 70% to less than 60%, according to the International Monetary Fund.

This trend has accelerated since last year when the U.S. and its allies froze Russia’s dollar reserves in response to the country’s invasion of Ukraine.

Since then, various countries have been exploring alternatives to the U.S. dollar. Some are discussing the creation of new currencies for international trade, while others are purchasing more gold to diversify their reserves.

Bitcoin (BTC), a budding asset with many of the same characteristics as gold, may also benefit from this trend in the long run.

To learn more about the reasons and consequences of the U.S. dollar’s decline and the assets that will profit from it, watch the most recent Cointelegraph Report on our YouTube channel and remember to subscribe!

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