In the discussion of digital currencies versus fiat, the general consensus seems to be that cryptocurrency will act as a parallel industry to that of traditional fiat. However, we are now seeing a new phenomenon. Many countries are taking steps to “de-dollarize” their economies. Due to concerns over the U.S. dollar, interest in other forms of assets such as gold, crypto, and real estate is starting to take off in new ways.
U.S. Dollar Presents “New Risks” as More Nations Look for an Alternative Currency
According to Russian Foreign Intelligence Service director Sergey Naryshkin, using the U.S. dollar in Russia offers new risks. Naryshkin calls the dollar an “anachronism of the modern world economy,” referring to Washington’s use of sanctions as a political tool. Speaking at an international conference in Ufa, Russia, Naryshkin continued that “it seems bewildering that the US continues to be the holder of the main reserve currency while behaving so aggressively and unpredictably.” As such, many countries are seeing the dollar as a toxic currency and are starting to make plans for separation.
Russia, China, India, and Other Countries Begin to Diversify Their Reserves
Russia is not the only country voicing concern over the U.S. dollar. Other countries, including China and India, are starting to look into options to diversify their reserves. Currently, Russia is already taking steps to de-dollarize its economy. Russia has managed to phase out the dollar from exports and sign currency-swap agreements with other countries such as China, India, and Iran. Russia is also proposing to use the euro as opposed to the U.S. dollar in trades with the European Union.
Technology Offers New Opportunities to Diverge from U.S. Dollar
With the rapid improvement of technology and the globalization of the world’s economy, there are far more options than the U.S. dollar. Interest in cryptocurrency, for example, has recently increased. Popular cryptos are not just for “HODLing” anymore. There are more ways to use crypto to make payments, including buying real estate.
Propy’s global real estate platform allows users to buy properties all over the world using their choice of fiat or cryptocurrencies. As people and governments become more open to the idea of crypto, it will become easier to buy things such as real estate and gold using blockchain technology.