One of the more intriguing financial trends that has gained popularity in recent years is the de-dollarization movement.
De-dollarization is an effort by a growing number of countries to reduce the role of the U.S. dollar in international trade.
"Reserve currencies usually imply political stability, which supports confidence. The current political battles in the U.S. and the conflicting opinions as to how to deal with the national debt do not inspire confidence in global users of the dollar," DeCandia says.
Fortunately for Americans, there appears to be no viable alternative to the dollar as of yet. While gold has been an effective hedge against inflation, it is unlikely to replace the dollar as a global reserve currency due to challenges with transportation, storage, liquidity and supply. Likewise, Bitcoin and other cryptocurrencies face their own challenges with liquidity, security, scalability and energy consumption.
