Recently, the US dollar faces new challenges on the international stage. China, Hong Kong, and other countries are developing central bank digital currencies. However, Trump is taking measures to protect the dollar.
New Threats to the Dollar
The US dollar has long been the cornerstone of global finance. But China, Hong Kong, Thailand, the UAE, and Saudi Arabia are creating mBridge to trade without the dollar. The Bank for International Settlements (BIS) supported the project but was forced to withdraw under US pressure.
International Initiatives
Despite the BIS withdrawal, China continues to expand its alternative payment system, CIPS. Meanwhile, central banks are bolstering gold reserves to hedge against dollar fluctuations. These actions indicate that some countries are seeking new ways to reduce dependence on the dollar.
Trump Administration Actions
Donald Trump is actively working to maintain the dollar's dominance. He has banned central bank digital currencies in the US and supports dollar-backed stablecoins. These measures are aimed at strengthening the dollar's position as the world's primary currency.
Defending the dollar remains a priority for the US. The Trump administration is taking active steps to fortify its position in light of international initiatives aimed at diminishing its significance.
