Can the US Dollar Survive as the World's Reserve Currency?

October 31, 2023

As the United States’ economy has shrunk as a proportion of the global economy, the chorus of voices predicting the US dollar’s demise as the dominant global reserve currency has grown louder.

Projects such as mBridge, a blockchain-based platform to directly connect jurisdictional digital currencies, has added to the view that a small but gradually rising fraction of international trade is being denominated in other currencies – particularly the Chinese renminbi.

There is also certainly a sense that smaller businesses, which often face greater challenges in securing access to the global trading system, would benefit from a wider availability of invoicing options in a less dollar-centric international monetary system. There are, however, deeper considerations at play.