Could there be a new financial system not dependent on USD?

[Tony116]

It is hard to imagine a financial system that is not dependent on the dollar. There is a lot of talk about de-dollarization, but the dollar is not particularly depreciating in different countries, which means that there is still a demand for the dollar.

We were born and raised in an era where USD dominates the world, so it is a myth to hear about getting rid of USD and not depending on it. But if we learn about the history of world currency, before the USD dominated the world, we also had the currencies of England and France...that once dominated the world. That means that the USD weakening or being replaced is not impossible, anything will happen, but the question is when it will happen. I believe everything has a lifespan, nothing lasts forever, and higher mountains will have higher mountains.

[YUriy1991]

It is hard to imagine a financial system that is not dependent on the dollar. There is a lot of talk about de-dollarization, but the dollar is not particularly depreciating in different countries, which means that there is still a demand for the dollar.

We were born and raised in an era where USD dominates the world, so it is a myth to hear about getting rid of USD and not depending on it. But if we learn about the history of world currency, before the USD dominated the world, we also had the currencies of England and France...that once dominated the world. That means that the USD weakening or being replaced is not impossible, anything will happen, but the question is when it will happen. I believe everything has a lifespan, nothing lasts forever, and higher mountains will have higher mountains.

It's true that the US dollar is currently the dominant currency in the world, but history has shown that currencies can rise and fall in dominance. While it may be hard to imagine a financial system not dependent on the dollar, it's not impossible and "when it happens" it may just take time and change in global economics and politics. As with anything, nothing lasts forever and there will always be change. I think The key is to stay informed and adaptable to these changes.

[Tony116]

It is hard to imagine a financial system that is not dependent on the dollar. There is a lot of talk about de-dollarization, but the dollar is not particularly depreciating in different countries, which means that there is still a demand for the dollar.

We were born and raised in an era where USD dominates the world, so it is a myth to hear about getting rid of USD and not depending on it. But if we learn about the history of world currency, before the USD dominated the world, we also had the currencies of England and France...that once dominated the world. That means that the USD weakening or being replaced is not impossible, anything will happen, but the question is when it will happen. I believe everything has a lifespan, nothing lasts forever, and higher mountains will have higher mountains.

It's true that the US dollar is currently the dominant currency in the world, but history has shown that currencies can rise and fall in dominance. While it may be hard to imagine a financial system not dependent on the dollar, it's not impossible and "when it happens" it may just take time and change in global economics and politics. As with anything, nothing lasts forever and there will always be change. I think The key is to stay informed and adaptable to these changes.

I would say that it is bound to happen, it's only a matter of time, and it's not going to be that America will rule the world for thousands of years. Since the history of the world was formed, no country could rule for thousands of years without weakening or never being replaced, not even ancient history records it. However, many people are too crazy about America, seeing America as a holy place, so they stubbornly do not want to accept that fact.

[cydrix]

The US dollar may lose some of its current strength in the near future, but this won't happen overnight. In actuality, it will take 10 to 20 years for this shift to completely manifest.
This is true because the so-called BRICS will still need to overcome a number of obstacles before being completely integrated into the financial system. How to convert it comes first, followed by its liquidity, stability, and credibility. Before it happens, we could witness a complete financial conflict. So let's temper our enthusiasm for this news.

[jrrsparkles]

It seems like things are over exaggerated in OP, yes there are some international trades happened using other fiat and it's mostly due to the sanction over Russia for the war between Ukraine and Russia which put the European countries under pressure and they badly needed the energy sources from Russia in some way. However the future is visible to some extent China is dominating everything that is why other developed nations are looking for other manufacturing hub like India and others.

[ichsan ardi]

Source: Tutwa Consulting Group

BRICS nations are advancing at a fast pace to eliminate the U.S. dollar-dominated financial system. The first step is to bypass the U.S. dollar and the second step is to create a new currency to settle international trades. While the first step is already in practice, the second step could be put in place after the BRICS summit in August 2023.

The alliance countries have already taken measures to bypass the US-dominated global financial system. The aim is to move away from the dependency on the U.S. dollar and provide an alternative global financial option. BRICS is an alliance of Brazil, Russia, India, China, and South Africa.






BRICS: The Next Step To Eliminate The U.S. dollar
currency

Source: Unsplash

Just recently, BRICS nations overtook G7 countries in global GDP while taking purchasing power parity into account. Russia announced that it would pay with the Chinese Yuan to settle trade with Asian, African, and Latin American countries. China and France completed the LNG gas trade using Yuan, ending the dollar’s reliance on energy trades.

Therefore, BRICS are currently successful in their plans to eliminate the U.S. dollar to settle global trades in native currencies. However, if the alliance countries agree to a mutual currency to settle global trade in the upcoming summit in August, the dollar may face a significant drop in demand.
The U.S. dollar might lack potency if the BRICS countries fully eliminate it for global settlements. Over time, many other countries could join the bandwagon and distance themselves from the USD.

The development could make the dollar weak and make way for a new financial system not dependent on the USD. The success or failure of this development now only depends on the next BRICS summit in South Africa.
The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the near future,” said the Deputy Chairman of Russia Duma, Alexander Bobakov

https://watcher.guru/news/brics-advancing-to-eliminate-u-s-dollar-financial-system

According to my personal assumptions, this can happen, especially recently, Russia, China, wants to get rid of the dollar, they will create a new currency without using the US dollar, that's one proof of rejection of the US dollar, but I'm sure there will be a new currency between countries without the dollar, but the dollar will stay. according to the price.

[panganib999]

In my opinion, new financial system without dependent on USD is very possible, as long the countries who involved with is agree. In fact creating new money is possible too as long as the community is agree.


A little bit out of topic I want to add some other news too

French president says Europe should limit dependence on US - https://www.aa.com.tr/en/europe/french-president-says-europe-should-limit-dependence-on-us-for-security/2769816

China - Saudi Arabia summit agreements put pressure on US influence - https://www.vox.com/2022/12/10/23502903/china-saudi-arabia-united-states-relations-strain

Yes exactly. As long as there is a mutual agreement between everyone, it is not impossible to even create new currency to be used or change the financial system in which it won't be dependent on USD. In regards to changinf currencies, we are all aware that there have been mamy issues involved with USD even from before, and there are so many countries who are already waiting to be next reserved currency.

The currency alone is easy, but the agreement is the one that seems possible. We know that before it reaches some sort of agreement, there're various procedures to follow and it is also possible that there will be debates and arguments to follow.

Although the change of currency system is possible, I don't think the US will follow through with this, not even if their country falls to shitter. Besides the cost, and the impending and much worse financial collapse that this will bring, they'd also be taking everyone with them. At least this is the case if ever US is to change financial systems.

For other countries, it's very much possible as what the other peeps have told, even if no public consensus was made, as long as you have enough reserves to back the value of your currency, much like what happened in China and their Yuan, you should be good to go.

[chillaxe]

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

[DrBeer]

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

[BRINIRHA]

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

I think that currently China is taking steps to make their currency (Chinese Yuan) so that it dominates in use in international trade. Perhaps they too had been preparing for this a long time ago. And now they are starting to clearly show their intentions after seeing how the American economy is currently in a condition that is not doing well. America is fighting Inflation but they are being followed by a Recession behind it. And the level of confidence in the US Dollar is also declining at this time. And maybe China sees this as a good opportunity. Because currently China has indeed controlled the market in Asia and they also intend to dominate the world market.

every month we hear about countries starting to buy oil or doing international trade using Yuan. As an example of the latest news about this one.

~ Pakistan switching to yuan to buy Russian oil

[tjtonmoy]

It is possible to have a system without the USD. I don't think it will be done very soon. It will take time, as every country in Brick Nation will try to force their own to be the one to use as the main trading currency.
Or they can come up with a new currency, which could be used to make transaction between those individual countries.  But making this happen will create conflicts and could lead to different opinion amongst them.  So the possibility is still there, but how they are going to execute this is a question to ask.  I don't think that it is necessary to dedollarise the whole world, as it is going well already.  But it will be a fun event to see how they are going to do it and what they are going to achieve from it.  Only the time will tell.

[slapper]

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

It's funny, right? Some folks treat the USD like it's untouchable, a currency from the heavens that'll never falter. But the truth? The global economy's a wild maze. China and India might not ditch the dollar now, but don't count out the future.

Switching to a fresh global currency? Perks abound. It'd loosen Uncle Sam's grip, giving others a voice in the money game.

Sure, we can't predict the future with crystal-ball accuracy, but assuming the status quo lasts forever? Absurd. Time to explore alternatives, brace for a world where the USD doesn't rule supreme.

[axxo]

In my own opinion, I think it is possible for there to be a new financial system that is not dependent on USD. In recent years, there has been a wide growing interest in alternative crypto currencies and on the payment system, including the crypto currencies and the block chain technology which could be possibly potentially can offer a new way to conduct global financial transactions without relying or without depending on the USD. But of course the adoption of such systems would definitely require a drastic changes to current financial infrastructure regulations.

[Kakmakr]

It is a reality that some countries might consider replacing "Western" dependency to protect their own economy. The US are facing huge challenges economically and it might have to default on their debt soon, so why should countries be inter dependent on the US Dollar, if it might go bankrupt soon?

I think the BRICS countries are implementing backdoors to protect their own countries. We saw how the US Government bailed out Banks with tax payers money, when they struggled.... now the government is being pulled down by these Banks and it's reckless actions. 

[Argoo]

It is a reality that some countries might consider replacing "Western" dependency to protect their own economy. The US are facing huge challenges economically and it might have to default on their debt soon, so why should countries be inter dependent on the US Dollar, if it might go bankrupt soon?

I think the BRICS countries are implementing backdoors to protect their own countries. We saw how the US Government bailed out Banks with tax payers money, when they struggled.... now the government is being pulled down by these Banks and it's reckless actions. 

The BRICS countries only want to create their own currency, but this is still very far away. So far, there is not even information what kind of currency it will be - a completely new one or any country that is part of this union. One of the possible options is that it will be the Chinese yuan. But this will mean that all other countries, instead of dependence on the United States, will fall under the dependence of China.
Of course, the dominance of the dollar is not forever. But so far there is no serious alternative to the dollar. In any case, this is not a question of the near future.

[Renampun]

It is hard to imagine a financial system that is not dependent on the dollar. There is a lot of talk about de-dollarization, but the dollar is not particularly depreciating in different countries, which means that there is still a demand for the dollar.

We were born and raised in an era where USD dominates the world, so it is a myth to hear about getting rid of USD and not depending on it. But if we learn about the history of world currency, before the USD dominated the world, we also had the currencies of England and France...that once dominated the world. That means that the USD weakening or being replaced is not impossible, anything will happen, but the question is when it will happen. I believe everything has a lifespan, nothing lasts forever, and higher mountains will have higher mountains.

agree with you, all of us here grew up in an era where the USD dominated the market and it would be difficult to remove it from international trade, because people's trust in the USD was quite high. but even so, nothing is strong forever, and that includes the USD. USD weakening can be done by Yuan, Ruble, and several other currencies. these countries could have left the dollar and switched to other currencies that are more profitable for them.

but even if weakened, the USD will still be the choice for people for international transactions. it will still be a solution for people because indeed the average person in the world is used to using USD in their international transactions and it is quite difficult to change this habit.

[so98nn]

There is no chance that will ever happen with the BRICS. These countries could never adopt new dominated currency because U.S. dollar still surpasses all of the currencies out there. Every system is locked on the US dollar prices every trade in the world happens with the exchange rate of dollar. They have such great dominance that most of the countries universal currency is dollar in similar way universal language is English. I am definitely sure that BRICS will fail to adopt new system. It could crumble their economy. This could also lead to lowered transaction in dollar reserves and thus threatening the economic cycles within these countries.

[BitcoinTurk]

To express my personal opinion, it is possible to create an economy without the reserve currency right now (USD) but it takes a lot of effort and time to create and strengthen this economy. The reason for this is that although the economy seems to be suitable for rapid change today, it takes time to adapt to such a serious change. Although some countries economies have managed to create a system within themselves without using USD, the fact that this system is not actively used all over the world and that it is not a practical method supports my opinion. However, as I mentioned it is possible to create an economy that is not dependent on the USD with some time and a lot of effort. Of course, since the creation of such an economy will not be to the advantage of America and other major countries it will confront the new economy that will be created as a major obstacle on this path.

[Woodie]

With this race to be crowned the alright super power,  I think the other big nations have realized that they can not be benchmarked by a country they find not to be an ally in any way and with the only possible solution of having a parallel financial system with the coming of BRICS and this is here to stay as it gives them several benefits unlike being a USD supported financial system.

[DrBeer]

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

It's funny, right? Some folks treat the USD like it's untouchable, a currency from the heavens that'll never falter. But the truth? The global economy's a wild maze. China and India might not ditch the dollar now, but don't count out the future.

Switching to a fresh global currency? Perks abound. It'd loosen Uncle Sam's grip, giving others a voice in the money game.

Sure, we can't predict the future with crystal-ball accuracy, but assuming the status quo lasts forever? Absurd. Time to explore alternatives, brace for a world where the USD doesn't rule supreme.

I completely agree with you - "nothing lasts forever under the moon"

But if we talk about the dollar as the world's reserve currency and the currency of international payments, then no matter how "bad" it is, it's the best at the moment. And the problem is that we can't see an alternative!
I am not a "fan of the U.S.", I am a pragmatist who evaluates the world by real factors. For years I have heard some countries "moaning" that the "dollar is evil" (though for some reason they can't prove it ), and that the dollar must be replaced - but they can't, again, point to its "substitute" in a reasoned way.
Whether we like it or not, at this moment, and for decades to come, there is NO alternative to the dollar!
I have said many times that the international currency (currently the dollar), MUST have a mass of indicators. But ... the problem is that even such a strong and secure currency as the EURO, does not have in the right quantity and quality, all the necessary indicators to replace the dollar globally !  Any other currency will lead to a wild fragmentation of the world market, complication of mutual settlements, and a real loss of a single measure of value.
If you really know of a currency that has all the necessary qualities to replace the dollar - let's discuss ?