Jul

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Dollar’s Decline Meets Rising Dedollarization: The Threat Comes from Within
The Bloomberg Dollar Index has fallen nearly 8.5 percent, its steepest drop since the 1980s. Elsewhere, incremental signs point to emerging alternatives.
Peter C. Earle
June 23, 2025

The recent weakness in the US dollar has reignited the debate over the durability of the dollar’s dominance in global finance. Over the first half of the year, the Bloomberg Dollar Index has fallen nearly 8.5 percent, marking one of the sharpest declines since the mid-1980s. Yet while this drawdown has fueled widespread commentary about de-dollarization, it is important to distinguish between dollar weakness — a familiar, cyclical phenomenon — and the far more consequential and complex issue of de-dollarization, which concerns the dollar’s standing as the world’s primary reserve currency and medium of international exchange.

Rich Bubb writes:

A thought I had was that many/all future currency/ies might eventually only be crypto based. How that develops is an interesting (read: slightly frightening, for me) scenario. And I think the exchange rates would be a tough hurdle to deal with. Unless there'd be a worldwide cryptocurrency system. Then there's the point that must be solved, specifically that quantum computers of 'bad actors' might be able to hack/crack cryptos' security. Maybe crypto security protocols could be quantum-based, run by quantum computers?

Another point might be powering those Q-computers (electricity) constantly. Obviously without constant power any computer is a nice pile of parts. Furthermore, any significant programming errors could 'delete' trillions worldwide before any human could intervene.


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