IMF Director Reveals: Iranians, Brazilians, and Saudis Embrace Bitcoin in the Shift Away from the US Dollar toward Chinese Yuan

With more than 420 million investors around the world already invested in the cryptocurrency market, Bitcoin is slated to be used as a means of payment by more counties in the coming years. Already, two countries on different continents have adopted Bitcoin as a legal tender and many others have regulated the top coin as a commodity like Crude Oil and precious metals. As a result, the overall fiat currency global reserve is on the cusp of a major decline as more institutional investors and countries hold Bitcoin on their balance sheets

Interestingly, the United States is a holder of Bitcoin, with more than 200k units seized by law enforcement in collaboration with the Department of Justice (DoJ). Many other countries are set to include Bitcoin in their reserves as Ethereum core developer Vitalik Buterin argued that top blockchains will soon be regarded as network states with the ability to issue loans to governments through DeFi protocols.

IMF Sees Hyper Dedollarization Amid Bitcoin Mainstream Adoption

According to the International Monetary Fund (IMF) utive director for Russia, Aleksei Mozhin, during a recent interview with RIA Novosti Monday, the ultimate de-dollarization is inevitable with the United States upholding inflationary monetary policies by the day. Notably, Mozhin noted that many countries are keen on using other currencies including the Chinese digital Yuan to settle international trade Mozhin noted

We can see that Iranians, Brazilians, and Saudis are already switching to trade in yuan, not only with China but also with third countries.

With the United States dollar holding the highest stake in global currency reserves, Mozhin insisted that even U.S. officials are worried about the declining use of the dollar to settle international trades. Moreover, the United States Federal Reserve has in recent years printed a significant amount of the dollar supply to cushion Americans against the Covid-19 economic devastations.

Interestingly, Russia in collaboration with other top global economies including India, China, South Africa, and Brazil, among many others has formed an alliance dubbed the BRICS to break free from the dollar dependence. Recently, the Chinese Yuan overtook the United States dollar in international trade involving China and its business partners.

Consequently, Mozhin expects the de-dollarization to take place slowly and gradually until other currencies step in. Furthermore, the United States has issued several sanctions to different countries to the extent that they have teamed up against the dollar dominance among themselves and other nations

“It’s clear that it will not happen at once, but the process has begun,” Mozhin added.

Market Outlook

The Bitcoin market capitalization is half a trillion US dollars with the global debt rallying in hundreds of trillions. With mainstream Bitcoin adoption happening through crypto regulations and heightened institutional investors’ demand, the use of Bitcoin between different state operations remains imminent. Furthermore, Bitcoin has already been tested through different economic challenges to guarantee it to overtake gold as a store of value in the near future.