Janet Yellen, the United States Treasury Secretary stated that the dollar might be affected by sanctions imposed by the country. Recent United States sanctions have led to countries seeking alternatives with some seeking alliances. BRICS, an intergovernmental organization of emerging economies in pursuit of interests might take the share of the dollar dominance.

Janet Yellen Flags Loss of US Dollar Dominance 

The Treasury Secretary that the more sanctions are imposed on countries, those affected will see out other alternatives. In her recent address to the House Financial Service Committee, Janet Yellen pointed out the potential effects on the country’s currency amid moves by countries within BRICS. 

“The more sanctions the US imposed, the more countries (BRICS) will seek financial transaction methods that do not involve the U.S. dollar.”

Over the years, the dollar has become the world’s trade currency but this could be another threat as BRICs advocate trade in local currencies. This will significantly affect the rate of dollar transactions leaving an impact on the U.S. economy. While US officials seek ways to make the dollar stronger –‘s preserve its dominance, experts tip that BRICS nations might ditch the dollar in some areas. 

Crypto executive, Gabor Gurbacs explained on X (formerly Twitter) that a turnaround might be impossible at this point unless they deregulate and deweaponize. 

“I personally told them this a 100+ times. Not sure if it’s possible to turn things around unless they completely deregulate and deweaponize.”

Crypto Might Be In The Mix

US regulators have flagged sanctioned countries using cryptocurrencies to bypass certain rules. This is among the reasons raised by anti-crypto regulators to impose stricter laws on the industry. However, pro-crypto lawmakers say the market could strengthen the dollar is fully embraced in the country. Recent lawsuits filed by the Securities and Exchange Commission (SEC) have led to an exodus of talent away from the United States. Blockchain payment firm Circle called on US regulations to protect the dollar among other benefits.

Also Read: FDIC Nominee Says Banks Free To Serve Digital Asset Firms

The post Why Sanctions Will Lead To A Plunging Dollar Dominance appeared first on CoinGape.

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Filed under: News - @ July 13, 2024 6:23 pm