De-Dollarization Dead on Arrival? 3 Reasons the Greenback Isn’t Going Anywhere

The dollar’s demise gets exaggerated more than a crypto influencer’s portfolio returns. Here’s why the global financial system remains shackled to the USD—for now.

1. Liquidity Wins Every Time

No other currency comes close to the dollar’s 24/7 trading depth. Try moving billions in yuan during Shanghai lunch hours—good luck.

2. The Petrodollar Lives (Despite What Gold Bugs Say)

Oil markets still price in USD, and no major producer—not even Russia—has fully ditched the standard. Talk is cheap; actual trade flows aren’t.

3. Network Effects Beat Ideology

Every SWIFT alternative so far has been slower than a Bitcoin maxi admitting ETH has utility. The dollar’s infrastructure is the devil everyone knows.

Will this last forever? Of course not—but ’de-dollarization’ remains a cocktail party talking point rather than a real threat. After all, if central bankers actually believed in alternatives, they wouldn’t keep 60% of reserves in... wait for it... dollars.

3 Reasons Why The De-Dollarization Movement Will End In Smoke

1. The US Dollar Remains Unrivaled

As of 2024, the USD accounts for nearly 58% of global foreign exchange reserves. The euro and yuan make up only 20% and 2.7%, respectively. The US dollar is also used for 88% of international transactions via SWIFT. The de-dollarization faced substantial headwinds on this front.

2. US Economic and Military Hegemony

The US is the largest economy in the world. The nation also arguably boasts the most powerful military force the world has ever seen. The US’s military might and economic strength make the de-dollarization movement a risky venture. No country wants to go to war with the US. And ditching the US dollar doesn’t improve any relations with the most powerful country in the world.

3. Lack Of Viable Alternatives

The dollar-based global trade system is a well-oiled machine. Switching the dollar for a different currency will cause substantial chaos and volatility. There are also no viable alternatives to the US dollar for global trade settlements. Replacing the USD will bring more problems than solutions, at least for now. The de-dollarization movement will likely fail to maintain the global trade system that the dollar has provided.