Despite the world gnawing at the US dollar with all its might, it may take a significant amount of time for major economies to completely dethrone the US dollar. Despite all odds, the US dollar is still the dominant currency of the world and continues to be used by the majority of nations in all major financial formats. The changing financial order has certainly helped the USD encounter new currency competitors, but are they enough to truly derail the reserve currency of the world? The answer is no, and here’s how USD can continue to trample the Yuan and Euro to take center stage in this ever-evolving currency competition, commencing the era of re-dollarization.
Also Read: BRICS: Why US Dollar Can’t Afford To Lose Reserve Currency Status
Three Ways Re-Dollarization Can Gain Momentum
1. Securing Trade Leverage
The US dollar is king for a reason. The world economies have long been trading in USD, a fact that remains unchanged to this day. While the changing geopolitical narratives with multipolar currency regimens have weakened the US dollar’s stance, the American currency still stands tall when it comes to recent trade metrics and stats. Per a recent Barchart report, the US dollar currently accounts for 50% of global payments, the highest level in more than 12 years.
U.S. Dollar is now used in nearly 50% of global payments, the highest level in more than 12 years 🚨 Euro not so much… pic.twitter.com/sCJ3lFiPQq
— Barchart (@Barchart) May 29, 2025
In addition to this, one key element that could help establish dollar dominance back in the game is deepening USD trade alliances with major economies and economies. Such ties can help USD flourish and help gain superiority over currencies such as the yuan and euro, helping reinstate re-dollarization back into the domain.
2. Digital Dollar/Stablecoin to Assert Dollar Dominance
The Trump administration is particularly keen on deploying stablecoins as an effective means to assert its dollar dominance. Scott BesSent, the secretary of the US Treasury, has been documented stating multiple times how stablecoins can be one of the most effective ways for other economies to engage with the US dollar, thereby bolstering the currency’s value in unprecedented ways. If the aforementioned mechanism is deployed officially, US dollar metrics can fly off the charts, making the currency a leading asset to interact with in the whole world. This will also help assert the re-dollarization narrative, eliminating other currency competitors out of the way.
“USD will remain the dominant reserve currency, and we’ll use stablecoins to do that.”
BULLISH:
— Brian Rose, Founder & Host of London Real (@LondonRealTV) May 24, 2025
Bessent says stablecoins could create $2T of demand for US Treasurys.
“We are going big on digital assets.”
Stablecoins will soon become the foundation layer of modern global liquidity. pic.twitter.com/D3wv0SNkE4
3. Energy Market Control
If the US wants to gain back its USD dominance, then the government must assert control in the energy market domain. This may include strengthening trade of energy products and services in USD to ensure that the world continues to leverage USD while making energy deals across the domain. This development will help redollarization narratives to gain steam, helping USD gain back its lost prestige and valuation.
.@POTUS enters the U.S.-Saudi Investment Forum, commemorating Saudi Arabia’s $600 billion commitment to invest in the United States pic.twitter.com/o5kfUqN4Uw
— Rapid Response 47 (@RapidResponse47) May 13, 2025
Also Read: De-Dollarization: Which Currency Will Replace the US Dollar?