The World Supports de-Dollarization, But it Will Happen Slowly– Not as a ‘Big Bang’
The de-dollarization of the global financial system will continue. This will be facilitated in particular by progress in financial technology. The development of automated trading platforms will reduce the cost of exchanging one currency for another. Central banks will seek to directly clear each other’s currencies without directly using the currencies of Western countries. In the future, central banks’ digital currencies may also be used for international transactions, reducing costs for economic agents. However, this process will be slow and we should not expect a fundamental change in the global financial system in the foreseeable future.