{"id":20001,"date":"2023-04-19T02:46:55","date_gmt":"2023-04-19T02:46:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/analyst-economics-bitcoin-news\/"},"modified":"2023-04-19T02:46:55","modified_gmt":"2023-04-19T02:46:55","slug":"analyst-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/analyst-economics-bitcoin-news\/","title":{"rendered":"Analyst \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

Fitch Solutions\u2019 global head of country risk has named the rising adoption of cryptocurrencies, the de-dollarization efforts by the BRICS countries, and China\u2019s rising \u201ceconomic might\u201d as key factors that erode the U.S. dollar\u2019s dominance over time. He cautioned that China will \u201cexert more influence in global financial institutions and trade.\u201d<\/strong><\/p>\n

Analyst Explains Why U.S. Dollar\u2019s Dominance Is at Risk<\/h2>\n

Fitch Solutions\u2019 global head of country risk, Cedric Chehab, explained why the U.S. dollar\u2019s dominance is declining in an interview with CNBC on Sunday. Fitch Solutions provides financial information services; it is a division of Fitch Group that includes Fitch Ratings, a global leader in credit ratings and research.<\/p>\n

The analyst explained that \u201cAny reduction in the status of the U.S. dollar is going to be a slow erosion rather than a paradigm shift,\u201d adding:<\/p>\n

\n

We\u2019re gonna see that dollar dominance erode over time.<\/p>\n<\/blockquote>\n

Chehab named three key reasons why the USD dominance is eroding. The first concerns China. He detailed: \u201cChina is the largest trade partner of most economies, and as its economic might continues to rise, that means that it\u2019ll exert more influence in global financial institutions and trade, etc.\u201d<\/p>\n

Secondly, he explained that several economies want to diversify. Russia, for example, has been trying to delink itself from the U.S.-led financial sector, he described, noting that the sanctions imposed by Western countries have accelerated the efforts. Chehab also mentioned the BRICS bloc and ASEAN countries making similar efforts to reduce their reliance on the U.S. dollar. BRICS consists of Brazil, Russia, India, China, and South Africa. They are reportedly working to create a new type of currency<\/a> that will reduce their reliance on the U.S. dollar. ASEAN nations<\/a> comprise Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.<\/p>\n

The Fitch Solutions analyst also pointed to central bank digital currencies (CBDCs) and cryptocurrencies as the third reason. Noting that they are \u201cless talked about,\u201d he cautioned:<\/p>\n

\n

We\u2019ll essentially see, perhaps, less use of general currencies. That will impact the U.S. dollar.<\/p>\n<\/blockquote>\n

Do you agree with the Fitch Solutions analyst? Let us know in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, lev radin<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n