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Last week we reported on the chances of Congress enacting regulations that would require crypto stablecoins to have reserves of dollars as backing.
Investor Kevin O’Leary, among others, believe that such regulations would go a long way toward preserving the dollar as the world’s reserve currency.
But as we’ve also previously reported on and predicted, the weaponization of the dollar and the international settlements system built around it has accelerated major countries unloading dollars and seeking an alternate standard.
According to the dailycaller.com, Russia, China, India and others are weaning off the dollar, to avoid Western sanctions and maintain their economies.
India has boosted its purchases of Russian coal and natural gas, paying in Chinese yuan, United Arab Emirates dirham, Hong Kong dollar, and euro, Reuters recently reported.
Turkey and Iran have also negotiated with Russia to base their nation-to-nation trade on the ruble.
The Reuters story said Iran placed its first cryptocurrency-based import order last week in an effort to evade American sanctions. The United States currently has a wide-ranging embargo on Iran’s banking, shipping, and oil industries.
Anthony Kim, of the Heritage Foundation commented to the Daily Caller News Foundation that “the current round of turbulence is likely to increase… momentum in the creation of a rival reserve currency or currencies to help supplant the oversized role of the dollar.”
Should the dollar decisively lose its use as a reserve currency, it would likely escalate inflation even further, according to monetary experts, and likely implode the U.S. economy.
For previous related stories, see:
- “COULD STABLECOINS SAVE THE DOLLAR?” (9 Aug 2022)
- “A U.S. CBDC WON’T SAVE THE DOLLAR” (5 Apr 2022)
- “THE NEW NEUTRAL” (29 Mar 2022)