Is De-Dollarization Inevitable?

As the world’s reserve currency, the U.S. Dollar has long dominated global trade and finance. However, a growing trend of de-dollarization is underway as countries seek to reduce their dependence on the dollar and promote their own currencies in international transactions.

De-dollarization refers to the process of shifting away from the U.S. Dollar in global trade and finance. This can take various forms, including settling transactions in local currencies, increasing the use of alternative payment systems like digital currencies, and promoting the use of other currencies like the euro or yuan.

Multiple reports in recent weeks have pointed to evidence that de-dollarization cannot be stopped. It’s no longer a question of “if” but “when” the world will stop holding the U.S. Dollar as the reserve currency, particularly as it pertains to trading for oil.

This may be why the Federal Reserve and the Biden-Harris regime are determined to bring forward a “Digital Dollar” to replace the current fiat currency. Since last October, the push for a Central Bank Digital Currency has been accelerating as timetables continue to be moved up. What was once projected to be viable by 2028 is now being targeted for 2025 or earlier. One analyst told the team at Genesis Gold Group the deciding factor will be how it is perceived by the American public, particularly independent voters. If they push back, the “Digital Dollar” will be held until after the 2024 election. If they embrace it, we could see the rollout process begin next year.

All of this seems to point to the notion that the Fed and the White House either believe de-dollarization is inevitable or they wholeheartedly welcome it.

“Whether through incompetence or by design, our government is pressing us toward both de-dollarization and Central Bank Digital Currencies, the ‘Digital Dollar’ as they say,” said Jonathan Rose, co-founder of Genesis Gold Group. “We watch these developments very closely to help us craft the best metals mix for our customers.”

The trend of de-dollarization is driven by several factors. One is the perceived instability of the U.S. Dollar, as the Federal Reserve continues to print money to finance the government’s debt and stimulate the economy. Many countries fear that this could lead to inflation and a decline in the value of the dollar, which would hurt their own economies and investments. BRICS nations have pounced on this notion and used it as a recruiting tool.

Another factor is the increasing geopolitical tensions between the US and other countries like China and Russia. These countries are seeking to reduce their dependence on the dollar as a way to protect themselves from possible US sanctions or interference in their economies.

The de-dollarization trend has significant implications for global finance. It could lead to a fragmentation of the global financial system, as more countries settle transactions in their own currencies or regional currencies rather than the dollar. This could also reduce the dominance of US banks and financial institutions in global finance.

The only things keeping the dollar afloat, according to many economists, are the potential risks associated with de-dollarization. For example, if countries shift away from the dollar too quickly, it could lead to volatility in currency markets or even a global financial crisis. Additionally, countries that rely heavily on the dollar, such as those with large dollar-denominated debts, could experience severe economic consequences if the dollar loses its value.

Despite these risks, many countries are pressing ahead with de-dollarization. China, for example, has been promoting the use of the yuan in international trade and finance and has established bilateral currency swap agreements with dozens of other countries. Russia has also been reducing its holdings of US Treasury bonds and increasing its gold reserves as part of its de-dollarization strategy.

De-dollarization is likely to continue to be a significant trend in global finance this year and beyond. The shift toward a multipolar world continues as globalists would love nothing more than a “level playing field,” which is coded language for the downfall of the United States.

What This Means for Americans

There’s a common trend among central banks, asset managers like BlackRock, and entire nations across the globe that point to the best way to prepare for both de-dollarization and the rise of Central Bank Digital Currencies. With few exceptions, every major player in world economics has been buying up as much gold and silver as they can accommodate.

This isn’t just due to the tried and true concept of “smart money” in which precious metals are used as the hedge against market turbulence. It’s a reflection of the very possible turmoil ahead. Markets ebb and flow, but both de-dollarization and CBDCs represent sea changes in how money is used, organized, distributed, and traded. But despite the lack of clarity of what’s ahead, there are two things the powers-that-be seem to acknowledge:

• Gold and silver will continue to be easily liquidated regardless of which currency is dominant.
• Gold and silver prices will either feel minimal negative effects from the massive changes ahead or they will rise. Some say prices will skyrocket whether through de-dollarization, CBDCs, or both.

Genesis Gold Group isn’t just a Christian precious metals company that specializes in self-directed IRAs backed by physical precious metals. We are a company that keeps track of what’s happening in the world. This is important for those concerned about their retirement accounts because having an idea of what’s happening now and what’s likely happening in the future can help us guide our customers to selecting the right mix of metals to hold in the depositories.

It is through our expertise that we’re able to educate our customers. This is important because, unlike the vast majority of precious metals companies, we seek a lifelong relationship. We don’t stop contacting our customers once the checks are cashed.

Engaging in rollovers or transfers of current or old retirement accounts into a precious metals IRA through Genesis Gold Group is the easiest way for most Americans to defend their wealth against the turmoil ahead. We strongly encourage everyone with a retirement account to protect to reach out to us with any questions they may have. As a Christian company, we believe proper stewardship is paramount in all financial matters.