Within the framework of the de-dollarization process that China is carrying out, more and more statistics are emerging that show how the US currency is gradually taking a backseat in international trade.

This is indicated by the American investor and businessman Balaji Srinivasan, who shared data on the subject on his X account, mainly highlighting the de-dollarization carried out by the Chinese government. The first statistic he presents has to do with the currencies involved in cross-border trade, which points to a constant increase in the use of the yuan in contrast to a lower use of the dollar.

In this way, the graph shows how the use of the yuan has advanced since 2017 to occupy almost 53% of international trade during 2024 ; while the dollar drops to 43%.

To continue arguing his thesis, about the growing de-dollarization of China, the bitcoiner publishes another graph related to this country's trade with Russia.

It shows the exponential rise of the yuan as a payment currency between the two countries, mainly shortly after the start of the war between Russia and Ukraine in 2022. A trend that was admitted by the Russian president, Vladimir Putin, who noted that More than 90% of trade between the two countries is done with yuan and rubles. 

Added to the above are figures from China's recent decision to get rid of USD 53.3 billion in US dollar bonds. This is one of the largest sales recorded since 2009, in a strategy that highlights the Asian giant's intention to diversify away from US assets. All this, while trade tensions are expected to between both countries continue to increase. 

The data presented by Balaji also coincide with what analysts from JP Morgan, the largest bank in the United States, have been saying since 2023, who assure that - although the US currency will maintain its dominance in the near future - the world economy is showing strong signs of de-dollarization . 

Global de-dollarization accelerates, although it is not close

According to experts, the de-dollarization process has accelerated due to tensions generated by sharp increases in interest rates in the US, along with sanctions that left Russia outside the global banking system. Both events caused not only China and Russia, but many other countries to try to challenge the leadership of the dollar . 

In this way, Brazil and China signed a trade agreement that allows them to use the currencies of the two countries: the yuan and the real. A decision that was inserted into a dynamic in which other places on the planet  began to carry out similar actions .  

Among the countries seeking de-dollarization, Pakistan stands out, which began replacing the dollar last year. This, while Iraq, Iran, Saudi Arabia, India, Bangladesh, Egypt and Thailand, also promote the use of their national currencies for trade.

Even the People's Bank of China has established cooperation mechanisms with the Ministry of Finance of Japan, the Central Bank of Malaysia and Bank of Indonesia to use national currencies for investment and payments in the private sector. 

The situation has become increasingly stronger with the actions of the BRICS, a bloc of 10 countries that are joining forces to reduce dependence on US dollars in their cross-border payments.

Consequently, they already carry out transactions using their local currencies, and in addition,  they are developing their payment system  based on central bank digital currencies (CBDC), which would be settled with their own stablecoins.      

Thus, dedollarization is gaining ground. "The figures are clear: in 2001, world reserves in dollars were 73% of the total, by 2021 that figure had been reduced to 55% and 47% the following year," says Brazilian journalist and geopolitical analyst Pepe Escobar. 

Since 2022, the dollar's share in global finances has fallen 10 times faster than the average of the last two decades, which is undoubtedly a figure of extraordinary impact. It is now no longer unreasonable to project a global share of the dollar of only 30% by the end of 2024, coinciding with the next US presidential elections. 

Pepe Escobar .

Paradoxically, the origin of this abrupt fall occurred after the freezing of Russian reserves in the West (an amount greater than USD 300 billion). As the International Monetary Fund has already warned, this situation raised alarm bells for many governments , which felt that it was no longer safe to hold dollar reserves abroad.

From there an avalanche of de-dollarization has been unleashed that, although it has not yet taken away the dominance of the dollar, does threaten the position of the currency for the coming years. 

Bitcoin citadels or dedollarized territories

Parallel to the de-dollarization process, there is another phenomenon that is advancing in the world and that also seeks to put aside not only the use of the dollar but also other fiduciary currencies. These are circular economies based on bitcoin (BTC) that have multiplied in recent years.

Also known as bitcoiner citadels, the objective of these communities, which originated in El Salvador, is to free themselves from the evils generated by the traditional economy and ensure that people learn to store their money in such a way that it is impossible to stop, control or corrupt by any central authority.

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In these territories, which are now multiplying throughout the world, people coexist under their own ideology and values ​​based on freedom, and very different from those already known and established. There, bitcoiners have decided to join, convinced that, by adopting bitcoin, they will have a sovereign asset in their hands.

The goal is to move towards the possibility of moving away from the defects of the traditional financial system, which is based on a currency that is under the control of government , and where debt can be issued ad infinitum, generating secondary effects, including which highlights inflation.