The Dollar Won, but Might the U.S. Lose Control of the Dollar?
Summary
The U.S. dollar dominates global finance, used in 90% of international payments and 40% of trade invoicing. This gives the U.S. considerable power and regulatory reach. Synthetic dollars, algorithmic stablecoins pegged to the dollar, offer an alternative but carry risks of losing their peg. Their widespread adoption could reduce U.S. sanctions power and regulatory reach. However, many still prefer U.S. dollar-backed stablecoins due to lower risk. The U.S. may need to integrate existing U.S.-dollar-backed stablecoins to counter this challenge.
