US Dollar Hits 20-Year Low in Global Reserves as Gold Takes the Lead
The US dollar's dominance as the world's primary reserve currency has eroded to a 20-year low, with its share of global reserves plummeting by 18 percentage points over the past decade. Gold has emerged as the preferred alternative, now representing 28% of reserves—its highest level in years.
Central banks have been aggressively accumulating gold, accelerating the dollar's decline. This shift reflects growing institutional skepticism about fiat currencies and a broader MOVE toward hard assets. The trend mirrors cryptocurrency's narrative of decentralization and hedge against monetary inflation.
While no cryptocurrencies were explicitly mentioned in the report, the dollar's weakening reserve status may indirectly benefit digital assets like Bitcoin—often dubbed 'digital gold.' Market observers will watch whether this accelerates institutional crypto adoption as portfolio diversification strategies evolve.
