The process of dedollarization is long and tough. Many problems lie in wait, experts stress. One major issue is the slow development of new regional payment systems not based on the USD.
Experts say these systems have weak infrastructure and face implementation challenges. The euro, with its high liquidity and excellent infrastructure, could be a serious competitor to the US dollar.
Representatives of financial institutions have commented on this situation, highlighting the obstacles faced by new regional payment systems. Most attempts to replace the dollar have failed. All alternatives are likely to face infrastructure and geopolitical challenges.
Analysts point to mBridge as a technological initiative aiming to replace the greenback. This cross-border platform uses new central bank digital currencies, supported by China, Hong Kong, the UAE, and Thailand. Another competitor is the Pan-African Payment and Settlement System, which allows payments in local currencies.
However, many projects face difficulties. Currently, the dollar accounts for 58% of global reserves. It leads all other currencies in global payments. According to SWIFT, in April this year, the greenback made up 47.31% of global payments.
The euro remains a worthy competitor to the dollar. It is currently the second-largest reserve currency in the world, offering high liquidity and a strong infrastructure.
