Dollar in Freefall? China’s Next Power Move Revealed
The greenback stumbles—and Beijing’s chessboard lights up. Here’s how the world’s second-largest economy could rewrite the rules.
Yuan’s revenge: Forget subtle shifts. A weakening dollar cracks the door for China to turbocharge yuan internationalization—swapping trade reserves, dumping Treasuries, or strong-arming BRICS into a dollar boycott. The PBOC’s been prepping for this since 2016.
Digital ambush: Watch for a surprise e-CNY acceleration. A dollar crisis is the perfect cover to push CBDCs as the ‘stable’ alternative—while conveniently tracking every transaction. How very… communist.
Gold grabs & crypto nods: Beijing’s already hoarding bullion at record levels. Next play? Quietly blessing Bitcoin mining (between power crackdowns, naturally) to hedge against Western monetary chaos. Ironic, given their 2021 bans.
The dollar’s not dead yet—but China’s playing the long game. And as any trader knows, the house always wins… especially when it owns half the table.
The American Currency is on the Verge of Collapse
Ray Dalio, the seasoned economic expert and head of Bridgewater’s Associates, had recently issued a stark warning for the US economy. Talking about his prediction in detail on X, Dalio shared how the US economy is moving towards a state where a financial heart attack may wreck the US economy. Dalio’s emphasis was on the rising US debt situation and how it may end up diluting the US economy, leading it to its death.
The level of debt our country faces is unprecedented in all of history. If we don’t effectively deal with it — and soon — our system will experience a financial heart attack.
It all comes down to the numbers. The US currently pays about a trillion dollars a year on interest… pic.twitter.com/O0WfhqCyo5
Moreover, Trump’s global tariffs have further been pressuring the US dollar. The US dollar has fallen 10% in 2025 and continues to exhibit a weak performance against other currencies. This development has given significant time for the anti-dollar forces like the yuan to take hold of the narrative.
What Is China Doing At Present?
PBOC earlier announced its plan to aggressively internationalize the usage of Yuan from all sides.
the central bank said.
Moreover, the bank is also in favor of establishing a multipolar currency system. The one that favors new currencies instead of relying solely on the US dollar.
These slow yet steady mechanisms predict a pattern, showcasing how China is integrating itself into the new world’s financial structure.
China is also preparing to work on a digital Chinese yuan to spearhead the new financial innovation. Although the country is strictly known for its anti-crypto policies, the nation’s digital Yuan attempts have been quite significant, with a special focus on e-yuan and its digital deployment around the world.