Is the Dollar Losing Its Crown? How AI and Crypto Are Rewiring Global Finance
AI and crypto technologies, including CBDCs and stablecoins, are structurally testing the dollar's global dominance, leading to gradual diffusion rather than immediate replacement.Summary
The dollar's long-standing dominance in global finance is facing its first structural test in decades due to the rise of AI and digital currencies like CBDCs and stablecoins. The dollar's share of global reserves is at 56.32% (Q2 2025), the lowest since the euro's inception, while 94% of central banks are piloting CBDCs. Dr. Alicia García-Herrero suggests a permanent shift will be measurable if the USD share drops below 55% by 2027, accompanied by over $1 billion in annual CBDC settlements. Stablecoins currently reinforce dollar liquidity, as 99% are USD-pegged, but non-dollar stablecoins exceeding 20% market share could cause liquidity fragmentation along geopolitical lines. Furthermore, AI is accelerating cross-border settlement, with 75% of payments expected to be instant by 2027. While China's state-led e-CNY scales rapidly, the overall trend points toward an evolution where digital money diffuses monetary power into a shared, data-driven system, rather than a complete revolution against the dollar.
(Source：BeInCrypto)