They will tell you dedollarization is impossible because there is no alternative. The yuan is not freely convertible. No other currency has the depth of the U.S. Treasury market. The network effects of the dollar system are too powerful to overcome. These are real constraints. They are not wrong. What they miss is that the project is not to replace the dollar with a single alternative tomorrow. The project is to reduce dependency enough that the weapon loses its edge. You don't need a world reserve currency to build a sanctions-proof economy. You need bilateral currency agreements with enough trading partners. You need commodity pricing in multiple currencies. You need payment infrastructure that doesn't route through New York. You need central bank reserves diversified enough that freezing your dollar holdings doesn't collapse your economy. None of that requires a yuan-based Bretton Woods. It just requires enough countries deciding that dollar dependency is a strategic liability and acting accordingly. That decision has already been made. The acting accordingly is already underway.

American military spending is only possible because the dollar is the reserve currency. This is not an opinion. It is arithmetic. The United States runs persistent deficits that would be unsustainable for any other country. It finances those deficits by issuing Treasury bonds. Foreign central banks buy those bonds because they need dollar-denominated assets for their reserves. They need dollar-denominated reserves because the dollar is the currency of global trade. The circle is closed. Military spending → deficit → Treasury bonds → foreign purchase → dollar demand → reserve currency status → military spending. Break any link in that chain and the whole logic shifts. This is why dedollarization is not just an economic story. It is the foundational strategic threat to American military primacy. Not Russian missiles. Not Chinese carriers. Foreign central banks deciding to hold a more diversified reserve portfolio. The most important battlefield of this century looks like a spreadsheet. The side that understands this is already fighting.

The de-dollarization trend appears to be far from global: The US Dollar’s proportion of official global FX reserves is down to 57%, its lowest in at least 30 years. This percentage has declined -20 points since 1999, with China and, to a lesser extent, Russia driving much of the decline. Over the same period, the combined proportion of the 4 major reserve currencies, the US Dollar, Yen, Euro and Pound, has fallen -12 percentage points, to ~87%, also its lowest in at least 30 years. Meanwhile, roughly equal numbers of countries increased and decreased their US Dollar reserves between 2015 and 2023. Therefore, the decline is heavily concentrated among a small number of reserve holders, suggesting the US Dollar's position in most reserve portfolios remains relatively stable. The threat to the US Dollar’s reserve currency status appears limited.

Good reminder in the light of continued De-dollarization, US Treasury actions and yields. People always talk about a million things about XRP and the XRP Ledger but miss the most important aspects of them. XRP is a hard asset. It's money. The XRP Ledger is permissionless and decentralized. It's are public good to allow you to move real money in a censorship resistant way. Those properties are gaining in value.

Saudi Arabia’s sudden exit from Project mBridge—the Beijing-led digital currency initiative aimed at de-dollarization—marks a significant pivot in global geopolitics. By stepping away from China’s alternative cross-border payment system, Riyadh has effectively reaffirmed its reliance on the U.S. dollar and the traditional petrodollar architecture. This strategic retreat highlights the limits of Saudi Arabia's diplomatic pivot to Beijing. Faced with escalating regional security threats from Houthi forces and China's evident reluctance to intervene militarily, the Kingdom has had to prioritize its immediate defense needs over its long-term financial diversification. Amid reports that Houthi rebels are utilizing Chinese-manufactured missile technology, Riyadh's short-lived financial experiment with Beijing has hit a wall. Ultimately, when survival is on the line, Saudi Arabia has recognized that its ultimate security guarantee still rests firmly with Washington.

US 10y Term Premium (blue, RS) v. Chinese 10y CGB yield (red, LS), 2011-present. Huge divergence with major implications. Start here: "If there is no de-dollarization going on & China's economy is in deflation (both consensus views), why are US 10y Term Premiums...RISING?" 🤔

It's ridiculous to claim that Treasury yields aren't rising due to increased inflation expectations, a loss of confidence in U.S. fiscal policy, declining Fed credibility and questions over its independence, or de-dollarization, as those are the most obvious reasons for the rise.

The dollar is not king because it is sound money. There is no alternative. FX turnover 89.2%. Reserves 57.1%. Payments 51%. Foreign-currency bonds 62.9%. The renminbi? 2% of reserves and a closed capital account. De-dollarization is a narrative, not a number

The U.S. debt problem might already be mathematically unfixable. Matthew Piepenburg argues the Fed literally can't fight inflation as Volcker did in the 1980s. Because America is now sitting on roughly $40 TRILLION in debt. Higher rates don't solve the problem anymore. They actually make it worse. Way worse. His conclusion: more money printing, more financial repression, and a slow erosion of dollar dominance. You can't rate-hike your way out of a debt trap. The math doesn't math. Tune in to know more ⏱ TIME POINTS ⏱ 00:00 - Intro 01:29 - Why Hormuz Threatens The Dollar 10:58 - Is De-Dollarization Accelerating? 16:40 - Trump’s China Talks Explained 23:00 - Is The World Dependent On US Oil? 28:07 - Will The Fed Buy US Debt? 33:53 - Sponsor: Nexo 34:31 - Inflation Is Heating Up Again 39:28 - Gold Price Targets For 2026 47:34 - Wrap-Up