As a long-term crypto investor with a keen interest in global economic trends, I find Janet Yellen’s recent comments on the potential loss of US dollar dominance both intriguing and concerning. The BRICS nations, an influential intergovernmental organization, have been advocating for trade in local currencies as an alternative to the dollar. This shift could significantly impact the volume of dollar transactions, potentially weakening the US economy.
Janet Yellen, the US Treasury Secretary, has hinted that the value of the dollar could be impacted by the country’s latest sanctions. These sanctions have driven some nations to explore alternatives and form alliances, such as BRICS, a collective of emerging economies. These efforts might gradually reduce the dollar’s market dominance.
Janet Yellen Flags Loss of US Dollar Dominance
In her speech before the House Financial Services Committee, Janet Yellen, the Treasury Secretary, warned that imposing more sanctions on certain countries could push those affected to explore other options. She also highlighted the possible repercussions on the country’s currency in relation to actions taken by BRICS members.
As a researcher studying international economic relations, I have observed a trend where the more sanctions the United States imposes, the greater the incentive for countries like those in the BRICS alliance to explore alternative financial transaction methods that do not rely on the US dollar.
For several decades, the dollar has held the position as the primary currency for global trade. However, this status may be challenged as BRIC countries (Brazil, Russia, India, China, and South Africa) push for more local currency transactions. This shift could substantially reduce the number of dollar-based transactions, potentially causing ripples in the U.S. economy. As American officials work to bolster the dollar and maintain its influence, BRICS nations are considering phasing out the dollar in certain sectors.
A crypto executive, Gabor Gurbacs, expressed on X (previously known as Twitter), that a reversal of the current situation may no longer be achievable unless regulations are eased and the related measures are disarmed.
As a researcher, I’ve shared my perspective on this matter over a hundred times. It’s unclear whether we can reverse the situation if they continue to rigidly adhere to their current regulations and weaponization policies.
Crypto Might Be In The Mix
US authorities have identified sanctioned nations utilizing cryptocurrencies to evade specific regulations as a concern. This issue is being used by critics of crypto to advocate for more stringent laws in the sector. Conversely, supporters of cryptocurrency argue that if the US fully adopts and integrates digital assets, the dollar could gain additional strength within the country. The Securities and Exchange Commission (SEC)’s recent lawsuits have resulted in a mass departure of skilled professionals from the United States. Circle, a blockchain payment company, has urged for clearer regulations to safeguard the dollar and other potential advantages.
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2024-07-13 21:23