Dedollarization: The Future of Money

In today's multipolar world, we witness the gradual and profound integration of individual national economies into the global system of production and trade in goods and services. Nevertheless, as these integration processes unfold amidst a multipolar world economy, the flaws of the dollar-centric financial system, established in the latter half of the twentieth century, become increasingly apparent. The freezing of Russian reserves has transformed reserve currencies into geopolitical weapons, casting a shadow over the stability of settlements with trading partners in US dollars susceptible to Washington's ability to impede transactions deemed suspicious. Consequently, global economic trust in the US currency wanes, prompting a surge in de-dollarization. Consequently, global economic trust in the US currency wanes, prompting a surge in de-dollarization. This trend unfolds against the backdrop of cryptocurrency development, the growing influence of the Chinese yuan, and the expanding issuance of IMF Special Drawing Rights (SDRs). As of mid-May, the Russian national currency has appreciated by over 11% against the US dollar since the outset of 2022, catapulting it to the forefront among 31 major global currencies. Furthermore, Russian officials have already announced plans to develop a digital rouble and establish a dual-loop monetary and financial system. Beyond the evident economic drawbacks the existing financial system presents for developing nations, including those in Africa, other issues come to the fore: the dependence of national monetary systems on external factors, vulnerability to potential crises in the US economy, the inability to ensure international payment confidentiality, leveraging the reserve currency and its infrastructure (SWIFT) for political purposes, and unjustifiable transaction costs, among others. Is it imperative to reevaluate the principles of regulating and owning the universal exchange equivalent? Is it plausible to transition from the US national currency as the bedrock of global trade towards a fundamentally new supranational currency, overseen by a broad consortium of states operating on principles of partnership?