Another obvious option is a BRICS currency along the lines of Bancor that Keynes suggested which could be backed by a basket of commodities. This would be a far more appealing option because it would ensure that a single country wouldn’t dominate global financial system the way US does today. However, in the short term bilateral swaps work just fine as can be seen at scale in Russia which is cut out of western trade pretty much entirely at this point.
It’s also not clear to me what leverage the US has into threatening countries into using the dollar. The main leverage the US has is its shrinking consumer market. As we already saw with the tariff war, the US can’t throw its weight around like it used to.
And noted regarding the article, but that doesn’t affect my original point that there doesn’t need to be a direct replacement for the dollar for the dollar to fall out of use.
Another obvious option is a BRICS currency along the lines of Bancor that Keynes suggested which could be backed by a basket of commodities. This would be a far more appealing option because it would ensure that a single country wouldn’t dominate global financial system the way US does today. However, in the short term bilateral swaps work just fine as can be seen at scale in Russia which is cut out of western trade pretty much entirely at this point.
It’s also not clear to me what leverage the US has into threatening countries into using the dollar. The main leverage the US has is its shrinking consumer market. As we already saw with the tariff war, the US can’t throw its weight around like it used to.
And noted regarding the article, but that doesn’t affect my original point that there doesn’t need to be a direct replacement for the dollar for the dollar to fall out of use.