As Asia seeks to distance itself from the US dollar’s dominance, new proposals and currency concepts are emerging. Malaysia and China are reportedly discussing the possibility of setting up an Asian Monetary Fund as a priority in the region. The proposed fund was discussed at a forum in China, and China’s President Xi Jinping welcomed the discussions on the proposed agency. Malaysia is among the countries working to detach itself from dollar dependence and has been working with China’s central bank to conduct trade in their own currencies.
In a move to reduce dependence on the US dollar, China and Brazil have agreed to conduct transactions exclusively in their respective national currencies, completely bypassing the use of the greenback. In addition to economic reasons, some countries want to move away from the US dollar to escape the influence of US foreign policy. A shift away from the dollar as the world’s reserve currency could have significant implications for its value compared to other currencies and crypto assets, and could affect the $133 billion stablecoin market, which is dominated by dollar-pegged stablecoins.