US Dollar Dominance Under Threat: Could Bitcoin be the Winner of this Competition?

• Russian President Vladimir Putin reiterated the growing concern about the threat to the global reserve currency status of the US Dollar.
• Previously, reports stated that Russian President Putin said that the US dollar has lost its global role in an “objective and irreversible” process.
• With the adoption of Central Bank Digital Currencies (CBDC) by various economies worldwide, the mode of digital asset payments continues to increase in international trade.

Russian President Putin emphasizes that the dominance of the US dollar is under threat: Can Bitcoin emerge as a contender?

Putin Speaks About the Dominance of the US Dollar

Russian President Vladimir Putin reiterated the growing concern about the threat to the global reserve currency status of the US Dollar. Although the US dollar has been the world’s reserve currency for a long time, its dominance is under threat with the proposal of the BRICS group to create a common currency. Meanwhile, there is speculation that cryptocurrencies will be used for this purpose by the group.

It is said that the BRICS group, consisting of the emerging economies of Brazil, Russia, India, China, and South Africa, is working on a common currency to counter the dominance of the US Dollar.

Previously, reports stated that Russian President Putin said that the US dollar has lost its global role in an “objective and irreversible” process. Last week, COINOTAG reported on former US President Donald Trump’s warning about the threat to the global position of the Dollar. He warned that the aggressive steps of the BRICS group towards de-dollarization could be a major threat.

It was reported that the Russian President participated in BRICS 2023 in Johannesburg via video conference from Moscow. He also attributed the success of reducing the share of the US Dollar in the trade of member countries to the BRICS Group. He said that the share of the US Dollar in international trade has decreased to 28.7%.

What Will Be the Dominance of Bitcoin and Cryptocurrencies?

With the adoption of Central Bank Digital Currencies (CBDC) by various economies worldwide, the mode of digital asset payments continues to increase in international trade. Therefore, countries like Russia, India, and China may consider introducing a new common currency, and the role of cryptocurrencies and Bitcoin for future use can also be considered. In the United States, Bitcoin continues to gain institutional reputation with companies such as Blackrock and Fidelity among those exploring options for offering BTC-based products.

At the same time, US regulators are also determined to ensure transparent oversight rules for the cryptocurrency market, which may be due to concerns about the elimination of the dollar.