Why this new market can delay the demise of the U.S. dollar as the world's reserve currency

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Why this new market can delay the demise of the U.S. dollar as the world's reserve currency – Nic CarterKitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity.

In the latest developments, Russia and China have almost entirely de-dollarized when it comes to mutual trade. Foreign Minister Sergei Lavrov told local media this week that more than 90% of settlements are now done in national currencies. On top of that, bilateral trade between the two nations increased by 26% to $240 billion in 2023.

Stablecoins are a new demand source for U.S. Treasuries because they are mainly backed by U.S. Treasuries."Almost every stablecoin operates on this model whereby they hold Treasuries in reserve to back the dollar liabilities," Carter explained."That's a meaningful buyer of U.S. debt." The supply of stablecoins could hit $200 billion this year and $500 billion soon after, at which point, stablecoins would become a very meaningful holder of U.S. debt.

is the editor-in-chief and lead anchor for Kitco News, managing all editorial operations covering global markets, economics, commodities, cryptocurrencies, business and technology news. Michelle was also a key member of the team that launched the U.S. operations of CGTN in 2011. She was the New York-based lead anchor and producer of"Global Business America", CGTN's flagship global economic and business news show.

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