De-dollarization is inevitable. It will happen when the US financial system faces a crisis and alternative payment systems are in demand, believes Dmitry Evstafiev, professor at the Faculty of Communications, Media and Design at the Higher School of Economics.
“There is no question whether there should be de-dollarization, for it will happen by itself under two conditions. First, the crisis of the American financial system will give a serious boost to replacing the dollar as the global currency. The American financial system is a footstep away from the crisis and the country’s financial elite is trying to explain this to President Donald Trump who still does not understand it. The second condition is the appearance of new alternative payment systems. Germany already has an alternative to SWIFT, as do Russia, France and even China,” the expert said.
According to Evstafiev, the disappearance of the dollar as an economic power would not lead to a disaster.
“For the longest period of their history, people managed without a universal payment instrument, and this did not curb investments or the development of trade systems. Yes, it will be less comfortable without the dollar as a global currency and there will be difficulties with determining the real exchange rates of other currencies. But nothing more than that,” Evstafiev said.
He noted that the multi-currency system is quite stable.
“When you pay your partners in national currency, you understand what you can buy using this money. And it is not as clear when you use virtual dollars,” the professor added.
In conclusion he said that everybody will soon experience the inevitable consequences of de-dollarization.