De-Dollarization Trend will persist despite Trump opposition

The shift towards national currencies and a multipolar world is here to stay, says Lillie Ferriol Prat, a research assistant at the South African DUT BRICS Research Institute.

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04 February 2025

EghtesadOnline: US President Donald Trump has threatened 100% tariffs on BRICS countries if they attempted to replace the US dollar with a common currency, Sputnik reports.

The Kremlin dismissed that warning, stating no such plan is currently on the table.

Ferriol Prat notes that sanctions are often ineffective, especially as BRICS+ now represents over 50% of the global population. She believes Trump’s rhetoric is aimed at the domestic audience.

"I think it is a matter of preserving confidence and national self-esteem," Ferriol Prat tells Sputnik. "The current dollar monetary mechanic is in need of urgent reform as their persisting debt ceiling crisis indicates.

This prompts to self-reflection on the origin, execution and result of the American Dream. It is a very delicate balance to embark in a self-reflection of this magnitude while maintaining the sense of unity and confidence."

Trump is escalating opposition to alternatives to the dollar. On January 23, he signed an executive order banning Central Bank Digital Currencies (CBDCs) in the US, with language suggesting other nations' CBDCs could also be targeted, some experts say.

The Atlantic Council’s CBDC Tracker shows 134 countries – covering 98% of global GDP – are exploring digital currencies, including BRICS nations.

Since the freezing of Russia’s sovereign assets in 2022, cross-border wholesale CBDC projects have more than doubled. The Kremlin has said the move shattered trust in the dollar and euro. / Mehr