Dollar Dominance and Competing Currencies

Kristina Abashidze

Fragmentation, digital innovation and the global monetary system to 2050

Timeframe: 22/07/1944 – 31/12/2050

United Kingdom of Great Britain and Northern Ireland · Trade Policy · Issue II

Key Insights

• What is the future of dollar dominance? This report argues the dollar will not be displaced despite geopolitical tensions and digital innovation, due to its structural and infrastructural advantages. Instead, the system is becoming more fragmented and multipolar. By 2050, the dollar remains central but but no longer uncontested.

Definition

Infrastructural power: The influence derived from control over financial systems and institutions that enable global transactions, rather than currency use alone.

The most plausible long-term outcome is not a sudden collapse of dollar dominance, but rather the emergence of a more fragmented and regionally differentiated financial architecture.

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