In a podcast episode with Joe Rogan, Elon Musk shared stark warnings about the future of the US dollar. The tech-mogul said that the US is on the verge of going bankrupt. Musk further stated the US dollar would be worth “nothing” if people don’t take action. Musk’s comments come amid a global de-dollarization movement. Many countries have expressed the desire to move away from the greenback and use local currencies for trade.

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Elon Musk On Tariffs

When asked about his opinion on tariffs, Musk stated, “I think you need to be careful with tariffs.” Musk said that tariffs could lead to supply chain issues. He added that tariffs need to be predictable so that companies can adjust their supply chain. The world’s richest man also said that he is against sudden, giant tariffs.

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President Trump’s recent tariff spree led to a substantial dip in the market. De-dollarization shouts were muted as nations struggled to contain the market chaos. Trump recently announced a 90-day pause on tariffs for all countries except China. The world’s two largest superpowers continue to engage in heated battle.

De-Dollarization Fears Strong?

The US dollar has witnessed a major decline in power in recent years. During the last ten years, the yuan made substantial progress in its market expansion. The usage of yuan for trade invoices increased from zero to thirty percent in the past decade. Foreign banks now collaborate with the Chinese central bank through more than forty currency swap agreements. These recent advancements appear to advance the goal of de-dollarization.

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Despite the yuan making a substantial expansion, its value against the US dollar fell to a 2-year low recently. The dip came amid Trump’s announcement of additional tariffs on China.

While the de-dollarization movement has found many subscribers, the US dollar will likely continue being the global reserve currency for the foreseeable future.