From Dollar Dominance to Dollar Discontent

Barry Eichengreen

No 21372, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Although the U.S. dollar remains the dominant currency used in cross-border transactions, policymakers worldwide are increasingly uncomfortable with their financial dependence on the greenback. Their worries are heightened by developments such U.S. efforts to promote the issuance and use of dollar-linked stablecoins, which aspire to cement dollar dominance. This paper asks how countries, and Asian countries in particular, should respond to the challenge. It recommends a diversified strategy whereby governments and central banks explore the development of stablecoins linked to other currencies, link their fast-payment systems, pilot interoperable central bank digital currencies, and explore digital correspondent banking through tokenized bank deposits.

Keywords: Dollar; Stablecoins; Asia (search for similar items in EconPapers)
JEL-codes: F0 F30 (search for similar items in EconPapers)
Date: 2026-04
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP21372 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:21372

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP21372

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().