Everybody wants to replace the US dollar with a new currency, thus, coining the phenomenon ‘multicurrency world’. America’s closest allies in Europe are talking behind closed doors to make the euro the de facto currency. Many leaders from Europe and the European Union (EU) have called on countries to embrace alternative options. The world now seems to be fed up with the greenback as the White House weaponizes the currency.
The multicurrency world has many currencies, and various nations are simultaneously trading in it. For example, the Chinese yuan, euro, pound, yen, and rupee, among others, are seeing a surge in settlements. If that wasn’t enough, many others are using cryptocurrencies like Bitcoin and stablecoins such as USDT to settle payments.
The US dollar is no longer the de facto currency in a multicurrency world, as there are many other options. However, there is no strong contender against the USD that can take its place in the global sector. If a strong contender is found and gains trust, the endgame for the USD would begin.
“With no viable alternative to the US dollar as the world’s currency on the horizon, the more likely change is to a multicurrency world, where the dollar would still be dominant, but other currencies would play a larger role too,” wrote Bloomberg analysts Malcolm Scott and Saleha Mohsin.
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US Dollar Living in a Multicurrency World
From tariffs to trade wars and sanctions, the USD remains at the center of it all. The weaponization has become intense since the last decade, as the White House is taking on every country that crosses its path. You either agree with their policies or face consequences that can upend your economy. All these led to the reaction against the US dollar that we see today, paving the way for a multicurrency world.
