Is dollarization possible in the digital age?
Zahra Fakhri.
Why does the technology that was supposed to reduce the world's dependence on the dollar, end up increasing the dominance of the dollar?
For years countries have been looking for ways to reduce their dependence on the American financial infrastructure. Digital payments, blockchain and tokenization have also simplified this path.
But another way is taking shape. Stablecoins can make a faster and cheaper transfer, without necessarily going through the dollar itself; Because over 99% of the value of existing stablecoins is pegged to the dollar.
As a result, technology may not remove the dollar from the center of the world's financial system; but to change the way it is used. This is the paradox that could complicate the future of dollar dominance.
The official channel of Donya Akhtaz newspaper.