A new survey of central banks suggests growing skepticism about the future of the US dollar and its role in the global economy.

Analysts from the Official Monetary and Financial Institutions Forum (OMFIF) – an independent think tank organization concerned with central banking, economic policy and public investment – say there is a global shift away from the dollar and into other currencies, primarily the euro and the renminbi.

In the 2025 edition of its Global Public Investor report, which surveys 75 central banks around the world, OMFIF says there are clearly “growing questions over the dollar’s dominance in portfolios and public investors are seeking safe-haven assets.”

The survey notes that lately, euros have outshined dollars and among emerging markets, the renminbi has surfaced as a new favorite.

“The dollar is the only currency where net demand has fallen among central banks this year. This is
attributable to rising concerns about the US political environment, highlighted by 70% of respondents,
up from 31% last year, as well as geopolitics and US fiscal risks. The caution extends to global public funds – more than half think that US market exceptionalism will end.”

However, OMFIF notes that the dollar’s reserve currency status is not yet under threat, given that 80% of central banks surveyed said that the dollar still provides safety and liquidity, and that the “vast majority” expect the greenback to constitute over 50% of global reserves over the next decade.

Rather than a rapid “de-dollarization,” central banks are anticipating a “gradual currency diversification,” according to the report.

As to what’s driving the move away from the dollar, according to the survey, the US political environment under the Trump administration is “directly leading to doubts about the dollar.”

“This factor was selected by 70% of respondents as a discouraging factor for investing in dollar assets, more than double from a year ago. Linked to the recent political shift is the move towards trade protection and broader geopolitical uncertainty – which 60% flagged as an issue, up from 32% last year. Concerns about the fiscal outlook have also increased, with one central bank in Europe mentioning, ‘we are mindful of potential risks stemming from US fiscal imbalances’.”

Read the full report here.

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United States President Donald Trump’s decision to create a national crypto stockpile and a Strategic Bitcoin Reserve (SBR) has sparked debate. Industry analyst Jake Chervinsky contends that while some see it as a positive move, it is not enough to establish the US as the global leader in cryptocurrencies.

A Solid Start But Not The Complete Solution

Chervinsky, the chief legal officer at Variant, believes that while the SBR is a positive step, it does not make the US as the global center of cryptocurrency. He claims that in this situation, true leadership demands more than just keeping up with digital assets. Without strong regulations that foster innovation, the US faces the risk of falling behind countries with superior regulatory frameworks.

He argued that fostering an environment that allows blockchain engineers and entrepreneurs to thrive is just as important as hoarding Bitcoin. Without clear regulations and support, businesses may choose to operate elsewhere, abandoning the US.

1/ The Reserve and Stockpile are likely good for US fiscal policy and market prices, but neither are enough to make the USA the crypto capital of the world.

For that, we need new policies empowering entrepreneurs to launch protocols and products made in the USA.

Here’s how

— Jake Chervinsky (@jchervinsky) March 7, 2025

The Future May Be Shaped By The Crypto Summit

The SBR has been a key topic as crypto leaders gathered at Trump’s White House Crypto Summit with strategic reserve in focus. The event brought together financial professionals, business executives, and policymakers to examine the country’s approach to digital assets. Many in the cryptocurrency community view this as a watershed moment to push for better legislation and more transparent regulations.

As of today, the market cap of digital assets stood at $2.78 trillion. Chart: TradingView

Chervinsky has made a strong case for the necessity of a long-term strategy. If the government truly wants to be at the forefront of cryptocurrencies, he argues, it must do more than just buy Bitcoin. Policies that promote blockchain development, safeguard investors, and provide regulatory certainty will be essential to global competition.

“For that, we need new policies that will empower entrepreneurs to launch protocols made in the USA,” he posited. “Being ‘the crypto capital’, he said, doesn’t mean “holding the most crypto wealth compared to other countries.”

Chervinsky pointed out that to be a crypto powerhouse, it means “having the most innovation, the most jobs, the most influence, and the most economic activity.” And, in order to attain this, the government “must support businesses, not just assets.”

Other Nations Move Fast

Other countries are making progress as the United States considers its next move. Countries like Singapore, the United Arab Emirates, and Switzerland have passed laws that are favorable to cryptocurrencies, which attracts businesses and innovators. The retention of outstanding people and creative ideas in these areas is at risk if the US does not take such action.

The digital currency sector is also keeping an eye on how the government handles regulations. Some US businesses have considered relocating their operations abroad due to policies that are difficult to understand, not to mention ongoing legal issues.

Featured image from Gemini Imagen, chart from TradingView

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