The US dollar’s role as pre-eminent global currency is under pressure. Enthusiasts of BRICS (the grouping of economies that includes Brazil, Russia, India, China and South Africa) hope to displace it. The Mar-a-Lago thought-bubble hoped to diminish the dollar’s international role. Russia and Iran have made alternative payments arrangements to bypass American sanctions. China has plans to internationalise the renminbi. Now some are arguing that digital currencies – Bitcoin, stablecoins or one issued by central banks – will erode the dollar’s role. Banks have traditionally dominated the international payments system, making a tidy profit by skimming off a tiny fraction of every transaction as it passes through their hands. Non-banks have worked themselves into the payments system by offering extra services, providing credit or convenience. Amex, Visa, Mastercard, Apple Pay, Wise, Afterpay, Alipay and WeChat have all found a niche.
Battle of the currencies: The dollar versus digital | Lowy Institute
