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The World Quietly Moves on From the US Dollar
Global powers begin de-dollarization amid growing distrust in U.S. financial policy
The U.S. dollar’s dominance—long upheld by geopolitical strength and economic influence—is now facing its sharpest challenge yet. But the erosion is not being caused by market collapse or foreign sabotage. Instead, it’s being driven by what many call the overuse and weaponization of the currency by Washington itself.
From Russia to Iran and Belarus, the White House’s sanctions strategy has left a trail of crippled economies and frozen assets. The sweeping penalties have not only disrupted trade flows and revenue generation but also undermined the credibility of the dollar as a neutral global tender.
“The weaponization of the U.S. dollar has gone too far,” emerging economies have repeatedly warned.
Unlike the British pound—once the global reserve before the 1940s—the U.S. dollar has increasingly been used as a policy lever. While Britain wielded military might, it rarely applied financial tools to isolate nations. The dollar’s use as a strategic bludgeon has now led many central banks to quietly start moving away from it.
World Central Banks Begin Dollar Diversification
Despite remaining the most dominant currency on Earth—with 86% of international transactions settled in USD—the greenback is no longer viewed as universally reliable. Instead, the global financial community is beginning to reevaluate its role and risk exposure.
With the U.S. national debt surpassing $36 trillion, emerging markets are especially wary. Economic leaders are reacting by diversifying their foreign reserves, turning to gold, the Chinese yuan, and other regional currencies.
There’s also growing concern about the IMF and World Bank, which operate under a system deeply intertwined with U.S. financial control. These institutions offer little structural space for competing currencies, further solidifying the dollar’s dominance—but at the cost of fairness and inclusivity.
De-Dollarization Accelerates
Trust is the cornerstone of any financial system, and today, that trust in the U.S. dollar is fraying fast. The consequences of economic coercion are becoming clearer, and global leaders are moving not in protest—but in quiet determination—to reduce dependency.
“To rebuild trust, the U.S. must stop using the dollar as a weapon,” the article notes. “And it must foster global partnerships, not economic pressure.”
If the trend continues, the greenback may enter an accelerated path of decline, not through collapse, but through irrelevance—displaced by a multipolar reserve structure already taking shape in boardrooms around the world.
The world isn’t sounding an alarm.
It’s walking away—quietly.
@ Newshounds News™
Source: Watcher.Guru
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Will Tether’s USDT Get Banned in the US When the GENIUS Act Becomes Law?
New stablecoin rules threaten Tether’s US presence amid rising regulatory scrutiny
▪️ The GENIUS Act gives stablecoin issuers 18 to 36 months to comply with new transparency rules—or face a market ban.
▪️ Tether must choose between compliance, withdrawal, or launching a separate U.S.-compliant stablecoin.
▪️ Circle’s USDC could gain ground if Tether exits the American market.
Once the GENIUS Act is signed into law, stablecoin issuers will face a ticking clock: they’ll have 18 to 36 months to fully comply with sweeping new regulations—or be banned from operating in the United States.
At the heart of this regulatory overhaul is Tether, the issuer of USDT, the world’s largest stablecoin. Known for its limited transparency and lack of audited reserves, Tether now stands at a crossroads.
A New Regulatory Era for Stablecoins
The GENIUS Act aims to integrate stablecoins into traditional finance, creating a framework of regulatory safeguards for what are often the least volatile digital assets. While the bill is a milestone victory for the crypto industry, not all players are likely to survive its scrutiny.
USDT—which controls more than 60% of the global stablecoin market—could become a casualty. The bill demands regular audits, reserve transparency, AML/KYC enforcement, and technological capabilities to freeze or seize assets under lawful authority.
The Senate version provides a 3-year timeline. The House version cuts it to just 18 months.
Tether’s Troubled History with Transparency
Even before the GENIUS Act, Tether faced long-standing criticism for its lack of independent audits and opaque reserve reporting.
In 2021, the company settled with the New York Attorney General, paying $18.5 million and agreeing to exit the New York market after being accused of misleading claims about its fiat backing. The case revealed that $850 million had gone missing, and Bitfinex had used Tether reserves to cover the loss—meaning USDT was not fully backed for a period.
Since then, Tether has begun issuing quarterly attestations—but these still fall short of what the GENIUS Act will require.
Sanctions, Seizures & Scrutiny
Tether has also been under fire for enabling illicit financial activity. Accusations have included stablecoin usage by sanctioned entities in Russia and North Korea.
In response, Tether has increased cooperation with U.S. law enforcement. It froze $23 million in assets at the request of the U.S. Secret Service and has collaborated with the DOJ and FBI.
However, the GENIUS Act now makes such measures mandatory, not voluntary—requiring all stablecoin issuers to freeze assets, implement AML/KYC protocols, and comply with U.S. law enforcement across the board.
Can USDT Survive Without the U.S.?
Tether’s dominance is undeniable, with a circulating supply of nearly 158 billion USDT—more than double that of second-place Circle’s USDC (62 billion).
Yet Tether’s core business isn’t U.S.-centric. Its largest trading volumes come from Asia, Latin America, and emerging markets—primarily through global platforms like Binance.
USDT trading volume exceeded $62 billion in a single day—mostly outside the U.S.
This raises the question: Would a U.S. withdrawal even hurt Tether? Perhaps not immediately—but it could send damaging signals to regulators, institutional investors, and traditional finance.
A Withdrawal Could Hurt More Than Help
Exiting the U.S. would sever access to a vital hub of financial innovation and liquidity. It would also invite loss of confidence, reinforcing the perception that Tether is unwilling—or unable—to meet robust standards.
Meanwhile, Circle’s USDC, which is fully compliant and actively adjusting to U.S. and EU regulations, would stand to gain significant market share.
However, even Circle’s advantage may not be enough to dethrone Tether without regulatory support or additional shifts in market dynamics.
Room for Compromise Still Exists
The GENIUS Act still needs to be reconciled with the House’s STABLE Act, offering room for negotiation on timelines and foreign issuer provisions.
A source close to the legislative process suggested both Congress and Tether may seek middle ground, noting that Tether’s massive U.S. Treasury holdings help support the dollar.
“Tether’s demand for U.S. Treasuries is larger than Germany’s. Forcing a full exit could destabilize demand for U.S. debt,” the source said.
A US-Based Tether Stablecoin in the Works?
Tether CEO Paolo Ardoino confirmed that the company plans to launch a separate, US-compliant stablecoin later this year—distinct from USDT and tailored to American regulations.
While this could offer a legal workaround, it also introduces operational headaches, regulatory duplication, and unnecessary complexity.
“They probably would prefer not to do that—it’s not ideal,” said the anonymous source.
What’s Next for Tether?
The GENIUS Act represents the most serious regulatory challenge Tether has ever faced. Whether it adapts, exits, or splits into separate compliant entities will define the next chapter of stablecoin evolution.
The world’s most widely used stablecoin must now choose: conform, divide, or retreat.
@ Newshounds News™
Source: BeInCrypto
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