De-dollarization Accelerates in Asia

Will Bitcoin Be The Beneficiary Over Gold?

Investors,

The main headline across the world is that China and the U.S. have reached a preliminary agreement. According to Reuters, China would approve the exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China. This led President Trump to post on Truth Social “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!"

And, there was more good news. The consumer price index (CPI) rose 0.1% in May, which was less than the 0.2% expected by economists. However, bitcoin dropped 0.4% on the news.

The headline that caught my attention was a CNBC report stating that Asia, particularly the Association of Southeast Asian Nations (ASEAN) are increasing their pace of de-dollarization according to a Bank of America study. The dollar has fallen 8% on the year as global dollar holdings have declined from 70% in 2000 to 57% in 2024.