Experts in the crypto space have reason to believe that the prices of major cryptocurrencies including Bitcoin and Ethereum may see a significant rally in the near future. The major driving factor for such a rally would be the recent developments around the world that point toward “De-Dollarization”.
The US Dollar has historically served as the global reserve currency. The majority of international trade is settled in USD, be it trading of oil, commodities, bilateral trade agreements, boosting forex reserves, etc. De-Dollarization is the process of substituting USD as the base currency for the above-mentioned transactions.
Altcoin Daily pointed out in a recent Youtube video that more and more nations around the world are seeking alternatives to the US Dollar in a bid to reduce their dependence on the United States. Calls for an alternate currency have intensified amid the Ukraine War as the USD continues to lose its value.
Russian President Vladimir Putin announced earlier this week that Russia will begin using the Chinese Yuan instead of USD, for international payments. Saudi Arabia is reportedly seeking a similar arrangement with China. Meanwhile, South American economies like Argentina and Brazil are exploring the creation of a common currency. India and UAE are also exploring the use of the Rupee to trade non-oil commodities.
Crypto experts believe that the abandonment of the US Dollar as the global reserve currency will lead to the rapid devaluation of the currency. This in turn may prompt the US to seek a Bitcoin standard. The use of stablecoins and Ethereum may also increase as investors flee TradFi and seek refuge in DeFi.
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Source: Cryptocurrency - investing.com
