Crypto is increasing the world’s reliance on the USD, not decreasing it

USD global dominance is in decline worldwide. Almost all oil trading used to be done in USD, but now Russia is trading oil in their currency and local currencies. Saudi Arabia is exploring trading oil in other currencies.

Recently there was a meeting between Brazil, India, China and South Africa to explore a join currency system, referred to BRICS. The goal of this currency would be to dethrone the USD and take away its 80 years of global dominance.

Other countries like Indonesia are exploring ways to move away from the USD in trade and promote the use of their own currencies.

Bitcoin has been hailed a global currency that will take power away from governments. It is slowly gaining traction as a global currency and a store of value. It is not yet doing this at a meaningful scale, but has the potential to eventually.

The issue is the rest of crypto. USD backed stablecoins are 2 of the top 6 cryptos. A ton of CEX and DEX pairings are done with USD or USD stablecoins. 70% of Bitcoin trading at one point was done with USDT. The more trading that is done with USD and USD stablecoins the more crypto is supporting the USD and by proxy the United States government. It is ironic that while other countries are moving away from the USD crypto is actually help prop it up.

Hopefully as crypto becomes more common place the use of it as an actual currency increases and it hurts USD dominance and doesn’t help it.