US Hegemony is in question, as Saudi Arabia’s mBRIDGE CBDC threatens the position of the US Dollar – but how bad really is it?
What’s happening in Saudi Arabia harkens back to the first lesson in economics: there are always tradeoffs.
A Big Mac tastes good but will wreck your diet. On the other hand, Chipotle is healthier but will drain your bank account. Pick your tradeoff.
Here’s another one: if your country announces a ban on gas by 2035, like in states like California and New York, it will force oil-producing countries to scramble to find new alternate revenue streams.
Enter Saudi Arabia, which is slowly breaking ties with the U.S. dollar.
This is the topic in one of our recently released videos on the 99Bitcoin’s YouTube channel: “It’s Over, Saudi Arabia Just BROKE the US Dollar”
Was Losing U.S. Hegemony Part of Biden’s Plan?
We at 99Bitcoins consider ourselves politically agnostic, and besides, not to put all the blame on President Joe Biden, the US has been heading toward this disaster for several years.
The painful truth is the free ride of the dollar is over. The world can’t sustain it.
Since 1933, the U.S. dollar has lost 92% of its domestic purchasing power. It doesn’t help that almost half of global trade is based on this volatile system.
Recently, the Atlantic Council, an American think tank for international affairs, had this to say about the Chinese-Saudi deal: “Since Russia’s invasion of Ukraine and the resulting financial sanctions, we have seen cross-border wholesale CBDCs, such as China’s Project mBridge, multiply and evolve.”
Here’s another quote from Saudi Arabia’s Crown Prince Mohammed Bin Salman, who told associates last year, “We are no longer interested in pleasing the United States.”
But like we said, it wasn’t just Biden; both parties ignored the debasement of currency, which led to the crashes of 2008, 2020, and 2023.
That leads us to China’s new CBDC project mBridge.
China’s New CBDC Being Adopted Around the World
Right now, Yuan settlements in China’s cross-border payments rose from 18%, nearing 30% by early 2024.
And International trade using yuan hit a peak of 4.7% in March 2024, up from 1.91% in 2023, Swift reports.
All of this is happening through China’s global settlement project mBridge.
mBridge might also be the reason China is defiant in adopting Bitcoin. Why buy Bitcoin when you have a CBDC and your own international settlement layer?
The point is that with US sanctions tightening, China’s CBDC is emerging as the preferred route for global money transfers.
As more central banks adopt CBDCs, the Yuan will eat into dollar supremacy like a vampire for blood, pushing for a balanced approach and challenging the old guard.
Watch the full version of “It’s Over, Saudi Arabia Just BROKE the US Dollar”
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
