US Dollar Dominance Under Threat Amid Yuan’s Global Ambitions

The dominance of the US dollar as the world’s primary reserve currency is facing mounting challenges.

With growing debt levels and renewed trade tensions, particularly under Trump’s aggressive tariff policies, confidence in the dollar is beginning to erode—and alternative currencies are stepping into the spotlight.

According to senior economist Hoe Eo Khor, the Chinese yuan is well-positioned to rise as a serious contender. In recent comments, Khor argued that the yuan’s global role could expand significantly if China allows broader access and improves currency convertibility.

“The era of US exceptionalism is fading,” he remarked. “The yuan is evolving, and with liberalized access, it could rival the dollar in global influence.”

However, for the yuan to achieve this, China must deepen its financial markets by offering more yuan-denominated assets—such as bonds and equities—and lift restrictions on currency flows. Khor emphasized that for global investors to trust a currency, it must be both backed by robust financial instruments and freely tradable.

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The dollar’s troubles have been amplified by macroeconomic volatility and a shift in investor sentiment. Rising interest in Bitcoin and gold—both seen as hedges against uncertainty—reflects a growing desire to move away from the greenback.

Bitcoin, in particular, has rallied sharply amid concerns over US fiscal health, with analysts noting a strong correlation between dollar instability and crypto performance. “Instability is Bitcoin’s best friend,” some traders now suggest.

As geopolitical and economic tides shift, the global monetary system may be inching toward a multipolar currency order—one where the dollar no longer stands unchallenged.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.