A potential long-term threat to the U.S. dollar as the chief global reserve currency is the increase and expansion of alternative cross-border payment systems, including the ones developed by China and Russia, according to a panel of experts.
Countries worldwide, especially adversaries to the U.S. government, have been developing a wide range of cross-border payment systems. While many of these efforts have yet to mirror the size of Western structures, they could pose a serious challenge in the long run.
“I think that this is a long-term threat, and it really requires for the countries that are pushing alternative payment systems to build economic relationships, to build commercial relationships, and to start trading in the one outside of established bilateral relationships,” said Dr. Carla Norrlof, a senior fellow at The Atlantic Council, at a House Subcommittee on National Security, Illicit Finance, and International Financial Institutions hearing on June 7….