THE IMPACT OF CRYPTOCURRENCIES AND ALTERNATIVE CURRENCIES ON DE-DOLLARIZATION IN THE NEXT DECADE

Abstract

The dominance of the U.S. dollar in global finance has long been a staple of international trade, investment, and economic governance. However, in recent years, there has been a rising trend of alternative monetary systems around the world, especially in cryptocurrencies and Central Bank Digital Currencies (CBDCs), which could seriously threaten the dominance of the dollar.

This paper reflects on cryptocurrencies and alternative currencies in de-dollarization, examining their ability to reconfigure the future of global finance within the next decade. How history, geopolitics, as well as the technological properties of blockchain and digital currencies reduce dependence on dollarization will be discussed in the study. The evaluation of how cryptocurrencies and the opportunities and challenges they have, as define CBDCs, will be approached through a multidisciplinary lens to understand a less dramatic economic global economy. It also endeavors to understand how digital currencies will change international finance in future and eventually reshape power relations. Ultimately, it finds that while the road to de-dollarization is challenging, the coming decade will see cryptocurrencies and CBDCs develop into evermore critical players in a remade global economic order.