How the U.S. Dollar Stole the Show—And Why Stablecoins Might Be Next

Enterprise On-Chain

Picture this: Donald Trump steps onto the global stage, saber rattling about a “100% tariff” on anyone brazen enough to flirt with de-dollarization. 

Sounds dramatic, right? That’s because it is—and it’s the latest example of the U.S. flexing its financial muscles to protect the greenback’s throne. Video here

The United States has spent decades pulling off what might be the greatest economic power-play in modern history. A currency so influential that a tiny tweak in Federal Reserve interest rates can send millions of people across Asia, Africa, and Latin America scurrying to check their local currency charts.

How did the dollar get so mighty?

Well, from the Bretton Woods Agreement in 1944 to the petrodollar pact with Saudi Arabia, the U.S. has been cooking up deals that make the rest of the world hungry for dollars—whether they like it or not.

But here’s the twist: stablecoins. Could they enhance or take away the US dollar's power?

This could mean faster payments, global reach, and streamlined operations for businesses—but for BRICS countries, it might spell tighter U.S. control.

Skeptics worry this might turn the dollar into a digital juggernaut, further tightening the U.S.’s grip on the global economy.

• SWIFT processes around $1.5 quadrillion (yes, with a “Q”) in transactions yearly—mainly in USD.

• 48% of SWIFT payments are in dollars, even though the U.S. accounts for only about 11% of global trade.

• The Chinese yuan might be rising, but it’s still only 4.5% of SWIFT payments—barely a dent in dollar supremacy.

• The U.S. froze $300 billion of Russian reserves. That’s more than the GDP of some countries.

• BRICS leaders talk about a new currency, but trust issues and lack of infrastructure bog them down.

These stats underscore how monumental the dollar’s lead really is. Even if China or the BRICS ramp up efforts to de-dollarize, they’re starting from a massive disadvantage. Meanwhile, stablecoins could be the knockout punch that ensures the dollar remains the MVP of the global stage for decades more.

Why the Dollar is King

How Nike Is Using Ethereum to Reinvent Supply Chains

Oil prices suddenly rise or fall? Everyone’s scrambling for dollars because, well, oil is priced in USD.

How did this start?

The U.S. saw an opportunity to reshape the global financial order in 1944 on its terms. So Uncle Sam invites 44 countries to a place called Bretton Woods in New Hampshire. Sounds like a quaint hotel resort, right? Well, it was, but it was also ground zero for one of the biggest financial power moves in history.

• The Deal: Every nation pegs its currency to the U.S. dollar.

• The Promise: The dollar is pegged to gold at $35 per ounce. If you don’t trust Britain’s pound or France’s franc, you can at least trust Uncle Sam’s gold vaults.

To sweeten the pot, the U.S. helps create the International Monetary Fund (IMF) and the World Bank. These institutions would lend money for rebuilding and development, with—guess who—the U.S. holding a big chunk of voting power

No gold backing? How on earth do you keep people addicted to your currency? Answer: Make them buy the world’s most critical commodity—oil—in that currency.

• In 1974, the U.S. inks a groundbreaking deal with Saudi Arabia:

  • Saudis agree to sell oil only in U.S. dollars.

  • The U.S. promises military protection and a steady stream of weapons.

• Soon, OPEC (the Organization of the Petroleum Exporting Countries) follows suit, and the world now must hold dollars to buy oil.

By the 1980s, every major oil exporter is on board. No gold needed—the new anchor for the dollar is “black gold” (oil). This is the petrodollar system, and it’s brilliant in its simplicity: You want energy? You gotta get dollars.

Key Takeaways for Your Business

The BRICS (Brazil, Russia, India, China, South Africa) sometimes toy with the idea of creating their own currency to sidestep the greenback. Lula da Silva of Brazil even publicly mused about a common BRICS currency. But so far, it’s more talk than action, given that:

1. No single financial system compares to America’s muscle in SWIFT/CHIPS.

2. No deep and liquid alternative to the U.S. Treasury market.

3. Many nations still trust the U.S. more than they trust each other.

Result? The dollar remains king, even if it’s not always popular.

Stablecoins: America’s Next Dollar Superweapon?

Backed 1:1 by real dollars or dollar equivalents (like short-term U.S. Treasuries).

• Transactions can be done 24/7, faster than traditional bank wires.

• Global remittances become near-instant.

• You don’t have to rely on a local bank to hold your money in dollars; you can keep it in a digital wallet.

Why This Could Supercharge Dollar Dominance

1. Global Adoption
   As people around the world start using stablecoins for everyday payments or savings—especially in regions plagued by high inflation (think Argentina, Turkey)—they’re effectively adopting the dollar digitally.

2. Regulatory Reach
   If U.S.-regulated entities issue stablecoins, the U.S. government can impose blacklists or freeze addresses at the blockchain level—akin to sanctioning banks in the traditional system.

3. Demand for U.S. Treasuries
   To maintain a 1:1 peg, stablecoin issuers hold large reserves in USD or T-bills. A trillion-dollar stablecoin market means a trillion in extra demand for U.S. debt. That lowers U.S. borrowing costs and fuels American spending.

My Take: If the U.S. plays its regulatory cards right—allowing stablecoins but enforcing strict compliance—it could spawn a digital ecosystem that dwarfs any competitor currency. Imagine an era where everyone has a “digital dollar wallet,” facilitating real-time commerce and even emerging-market commerce that never even touches local banks.

• Pro-Digital Dollar: Efficiency, speed, and global reach could actually lower transaction costs and boost world trade.

• Anti-Digital Dollar: Countries worry about sovereignty and being just one click away from an American-led financial embargo.

Stablecoins: A Double-Edged Sword for Enterprises

For U.S. enterprises, stablecoins offer faster, cheaper global payments and a competitive edge in cross-border trade. With regulatory clarity, they can streamline operations and expand internationally, leveraging the dominance of the U.S. dollar.

For enterprises outside the U.S., especially in BRICS nations, stablecoins could reinforce U.S. financial hegemony:

• Increased Dollar Dependence: Stablecoins tie businesses closer to USD, undermining local currencies.

• Sanctions Risk: Blockchain transparency allows the U.S. to enforce sanctions in real time, creating vulnerability for enterprises in politically sensitive regions.

• Regulatory Fragmentation: Competing frameworks across jurisdictions (e.g., MiCA in the EU) could complicate adoption.

Who benefits?

• Winners: U.S. enterprises and companies in neutral economies gain from efficiency and lower costs.

• Losers: Enterprises in BRICS and sanctioned nations face greater oversight and economic control.