📌 According to Putin, these actions have accelerated the decline of the US dollar’s status as the world’s reserve currency.
– Vladimir Putin warns that the US dollar is dying as bitcoin gains “safe haven” status.
Putin criticizes Biden’s policy of undermining the US dollar’s status as the world’s reserve currency.
Sanctions and political use of the U.S. dollar are leading to dedollarization, and Russia is switching to yuan and rubles.
Amid the US debt crisis, bitcoin is gaining popularity as a potential safe haven and investment.
Russian President Vladimir Putin has issued a sharp warning to the US. President Putin said that the Biden administration’s policies are actually weakening the strength of the U.S. dollar.
According to Putin, these actions are accelerating the decline of the dollar’s status as the world’s reserve currency, which he called one of the White House’s “biggest strategic mistakes.”
The Russian leader said the use of the dollar in foreign policy has led to a decline in global confidence in it. It has also forced allies to reduce their dollar reserves. The shift is part of a broader trend of countries abandoning the U.S. dollar in response to sanctions and political maneuvers.
The dollar is the cornerstone of US power. It is the primary weapon by which the U.S. maintains its power around the world. As soon as political leaders decided to use the dollar as a tool of political struggle, this American power was struck,” Putin said.
Sanctions, especially those imposed after Russia’s invasion of Ukraine, have changed the face of Russian foreign trade. The use of the U.S. dollar and euro in Russia’s international transactions has fallen from nearly 80 percent to 13 percent. In contrast, the number of transactions in Chinese yuan and Russian rubles has risen sharply, signaling a shift away from the dollar.
This strategic shift away from the dollar is also evident in the skyrocketing U.S. debt, which now exceeds $34 trillion. Federal Reserve Chairman Jerome Powell has called this level of debt “unsustainable” and expressed concern about the viability of the U.S. dollar as the world’s reserve currency.
Over the long term, the U.S. is on an unsustainable fiscal path. That means our debt is growing faster than our economy. In essence, we are borrowing from future generations,” Powell said.
Amid this economic uncertainty, bitcoin has become a beacon for investors seeking stability: after a significant drop in price in 2022, bitcoin’s value has rebounded. This has sparked discussion about its potential as a safe asset and a viable alternative to traditional currencies such as the U.S. dollar.
Investors and technology enthusiasts, including former Ark Invest CEO Katie Wood, see bitcoin’s resurgence as an important counterbalance to the dominance of the U.S. dollar. The comparison between bitcoin and the U.S. dollar is increasingly seen as a watershed moment that could redefine the foundations of global finance.
During the March  regional bank crisis, bitcoin rose 40% while the regional bank index collapsed. Now, the local bank index is rising again, and after a slight correction following the introduction of 11 ETFs, bitcoin is rising again. In other words, the idea of flight to quality, flight to safety is being revisited,” Wood explains.
Bitcoin’s effectiveness as a hedging tool against the U.S. dollar has come under scrutiny. Several indicators point to an inverse correlation between the value of bitcoin and the performance of the US dollar against a basket of major currencies. This correlation emphasizes bitcoin’s potential role in diversifying investment portfolios and reducing currency risk.