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Op-ed: Crypto firms should look East for growth opportunities as USD dominance wavers

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The following is a guest post from BTSE CEO Henry Liu.

Every day it seems there are new headlines highlighting the wavering dominance of the U.S. dollar as the world’s reserve currency. At the same time, U.S. regulators are making it clear that USD-pegged stablecoins aren’t welcome in the world’s largest economy. With the future of both the fiat and crypto side of the equation looking uncertain, crypto companies especially are starting to look overseas to hedge their bets, or even to flee scrutiny themselves.

This is creating a once-in-a-lifetime opportunity for Asia to step into the gap. The region is leading the way in developing globally competitive cryptocurrency regulations, and that’s not to mention building globally competitive economies too. As such, Asia offers a well-developed and highly diverse environment for crypto companies to thrive. If they haven’t already, crypto firms should look East for their next growth opportunities.

USD’s Lessening Dominance In World Trade

USD official foreign exchange reserves have been shrinking for some time. As seen in the BIS Second Quarterly Review in 2022, the USD accounted for less than 60% of official foreign exchange reserves, its lowest share in the past 20 years.

The USD is also losing popularity as a currency for international payments, which has allowed other currencies to narrow the gap in global usage. For example, Russia announced it will support settlements in Chinese yuan when trading with Asian, African and Latin American countries. Saudi Arabia has overtly expressed that it would be open to trading in currencies beside the U.S. dollar for the first time in 48 years, including the yuan, euros, and rupees. Saudi Arabia has also openly discussed with India the possibility of starting rupee-riyal trade as part of efforts to boost economic ties between the nations. And that’s not to mention rumors of a new BRICS currency, which would possibly be a central bank denominated currency. And at the same time Malaysia, Indonesia, Singapore and Thailand h

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Author: Henry Liu

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