It looks like the US dollar is at risk now that 130 nations are moving towards the CBDC. Check out the latest reports about this below.
US dollar is at risk
Many countries worldwide are moving towards developing their own Central Bank Digital Currency (CBDC), including those within the BRICS bloc.
This trend towards digitization of finance and de-dollarization could potentially put the US dollar at risk.
The BRICS currency is expected to be announced in the coming year, which would further increase pressure on the greenback.
Reports from the summer indicate that a significant number of countries are in advanced phases of CBDC development.
According to a survey conducted by the Official Monetary and Financial Institutions Forum (OMFIF), 41% of Central Banks expect to have a fully operational CBDC by 2028. What impact could this have on the United States dollar?
In 2023, the conflict between the BRICS alliance and the US dollar was a major news topic.
The alliance had initiated several plans to reduce its dependence on the US dollar, which had significant geopolitical consequences.
However, the Western currency may face additional threats beyond the actions of the BRICS alliance.
Research indicates that as a result of the BRICS action, 130 countries are moving towards the adoption of a CBDC, which further puts the US dollar at risk. This development is accompanied by ongoing work on a BRICS currency project.
There has been a lot of debate about the possibility of a digital asset being used universally.
A recent survey conducted by OMFIF indicates that 41% of central banks are planning to launch a fully operational Central Bank Digital Currency (CBDC) in the next four years.
This could increase the prevalence of digital currencies on a global scale.
As a result, many countries may shift towards local currency use and decrease their reliance on the US dollar.
Currently, more than 11 nations have launched their own CBDC pilots, with the digital yuan experiencing significant success earlier this year.
The growing popularity of digital currencies could pose a threat to the dollar’s dominance in international settlements.