The de-dollarization movement has found a substantial foothold over the last decade. The US dollar is still the dominant global currency. Despite its dominance, the dollar has lost significant lustre in recent times. Let’s look at a few factors that could further accelerate the movement away from the greenback.

3 Things Accelerating De-Dollarization

The first thing that may cause countries to ditch the US dollar at a faster rate is the rising US debt. Japan and China have been the largest holders of US debt over the last two decades. In May 2025, the US debt exceeded the $36 trillion mark. Experts have pointed out the dangers posed by the increased US debt. During an interview with Joe Rogan on a podcast, Elon Musk said that focusing on managing the US debt must be a priority. Larry Fink, the CEO of BlackRock, has also raised worry over increasing debt in the US. In a letter addressed to the shareholders, Fink said that the US dollar might not continue being the reserve currency of the world. He is of the view that cryptocurrencies can eventually replace the US dollar such as Bitcoin (BTC).

The second factor that could accelerate de-dollarization is Western sanctions. Sanctioned nations like Russia and Iran have already moved on to other currencies like the Chinese yuan. North Korea, Russia, and Iran have even begun crypto transactions to escape the US dollar. Sactions could lead to more countries using local or digital currencies for trade.

US trade policies are another factor to consider for the US dollar’s long-term dominance. President Trump’s trade tariffs have rocked the global financial system. A strained trade deal could lead to nations ditching the US dollar for other alternatives. The BRICS bloc of nations has expressed the desire to create a new BRICS currency for mutual trade. Other trade partners could take a similar route in the future.

Also Read: Russia Begins Mega De-Dollarization Drive For BRICS

While the US dollar has seen a steady decline over the last two decades, completely ditching the greenback may be more problematic than many realize. The dollar-based trade system is a well-oiled machine. Replacing this mechanism could be more expensive than many countries can afford.