130 Nations Shift to CBDC: Is the US Dollar in Jeopardy?

• BRICS Bloc and 130 Nations Progress Towards Central Bank Digital Currency (CBDC)
• Advanced Phases of CBDC Development
• BRICS Alliance Versus US Dollar
• CBDC Development Amid BRICS Action
• 41% of Central Banks Anticipate Fully Operational CBDC
• More Than 11 Countries Launch Their Own CBDC Pilots
• 2024: A Pivotal Year for the US Dollar

BRICS Bloc and 130 Nations Progress Towards Central Bank Digital Currency (CBDC)

The overarching de-dollarization strategy for the BRICS bloc and the universal digitization of finance has led to an international movement towards a Central Bank Digital Currency (CBDC). This development poses a significant risk to the US dollar as 130 nations embrace this digital transformation. Furthermore, the impending introduction of the BRICS currency could exacerbate the international pressure on the American currency.

Advanced Phases of CBDC Development

Reports over the summer have confirmed that a significant number of nations are already in the advanced phases of CBDC development. This is backed by a survey from the Official Monetary and Financial Institutions Forum (OMFIF) that reveals 41% of Central Banks anticipate a fully operational CBDC by 2028.

BRICS Alliance Versus US Dollar

In 2023, the competition between the BRICS alliance and the US dollar was a dominating news theme. The BRICS alliance's de-dollarization plans have had far-reaching geopolitical consequences. Additionally, the initiatives of the BRICS alliance are not the only threats that Western-based currency is facing.

CBDC Development Amid BRICS Action

Research indicates that 130 nations are transitioning towards a CBDC amidst BRICS actions, thereby placing the US dollar at risk. This development is concurrent with the ongoing work on a BRICS currency project. Observers are speculating whether this could also manifest as a digital asset utilized universally.

41% of Central Banks Anticipate Fully Operational CBDC

An OMFIF survey has recently indicated that 41% of Central Banks foresee a fully operational CBDC within the next four years. This could potentially accelerate the prominence of these digital currencies on a global scale. In turn, this could encourage countries worldwide to favor their local currencies, further distancing themselves from the US dollar.

More Than 11 Countries Launch Their Own CBDC Pilots

To date, more than 11 nations have already initiated their own CBDC pilots. Additionally, the digital yuan experienced substantial success earlier this year. As similar currency options gain popularity, the dollar's dominance in international settlements could potentially be challenged.

2024: A Pivotal Year for the US Dollar

Without a doubt, 2024 will be a crucial year for the US dollar. The global south does not appear to be prepared to cease its de-dollarization plans in the near future. Furthermore, as US allies such as Saudi Arabia and the UAE adopt these initiatives, the currency may suffer irreversible damage.

Edited by Jonathan Stoker