De-dollarization is the new reality in 2025, and the world has come together to stand up against the US dominance. Developing countries are slowly ending reliance on the US dollar and settling cross-border transactions in local currencies. Emerging economies are also dumping US Treasury bonds and diversifying their reserves with gold instead. The developments are hampering the US-based assets and inadvertently affecting the broader American economy, which usually thrived on importing its debt to these countries.

Also Read: Trump Secures $1 Trillion+ Gulf Deals as UAE, Qatar & Saudi Boost AI, Defense & Tech

However, Kadan Stadelmann, Chief Technology Officer of the blockchain technology platform Komodo, explained how the US can avoid the pitfalls of de-dollarization. He explained that the US must navigate the agenda carefully and pivot towards the gold standard to mitigate threats. He stressed that Trump’s tariffs will only add fuel to the already enraged countries that are battling the trade wars. Read here to know how many countries are involved in the de-dollarization process in 2025.

Also Read: Solana Rallied 3433% From $8 in 2022 to $293 in 2025: Can It Happen Again?

Analyst Reveals How the US Can Avoid Pitfalls of De-Dollarization

Stadelmann stressed that the best option for the US to navigate de-dollarization is to consider adopting the gold standard. “A commodity-based monetary system, as has been the case in the past with the gold standard, may be the US’s only choice to salvage the dollar,” he said exclusively to Watcher Guru. “Tariffs are not the solution to the trade imbalance, and will only do harm to the dollar and bonds,” he said.

Also Read: PEPE Set for 372% Rally: What $1,000 Could Earn By July 2025

He also added that the US must reduce its debt, as it causes distrust in the dollar. “The US dollar and all fiat currencies lack intrinsic value. Money’s value comes from its utility and scarcity, and the US’ past inflationary policies have undermined these attributes. If the US is to avoid the pitfalls of de-dollarization, it might return to sound money to mitigate threats. The US must reduce debt and adopt a gold standard or a standard based on a basket of commodities,” he summed it up.