Future

Bank

Biden

Yuan

Rise

<p>The recent expiration of the long-standing <strong>petrodollar </strong>agreement between <strong>Saudi Arabia and the US</strong> has stirred the global financial system. This agreement, in place for decades, dictated that oil sales would be conducted exclusively in US dollars. Its demise raises questions about the future of the petrodollar system, but the answer might not be a single dominant currency. Enter Project <strong>mBridge</strong>, a collaborative effort that could usher in a multi-polar currency future for oil settlements.</p>
<h2 class="wp-block-heading" id="h-a-weakening-dollar-and-the-petrodollar-s-uncertain-future">A Weakening Dollar and the Petrodollar’s Uncertain Future</h2>
<p>The US dollar’s reign as the world’s reserve currency appears to be <a href="https://www.unlock-bc.com/99980/the-shifting-tide-how-powerful-nations-abandoning-the-dollar-could-impact-the-cryptocurrency-industry/" class="ek-link" rel="noopener noreferrer nofollow">weakening</a>. Over the past two decades, its share in global central bank reserves has steadily declined from roughly 70% to under 60% today. This trend is fueled by several factors:</p>
<ul>
 <li><strong>Shifting Global Power Dynamics</strong>: The rise of economic powerhouses like China challenges US dominance in the global financial system.</li>
</ul>
<ul>
 <li><strong>De-Dollarization Efforts: </strong>Powerful nations like Russia and Iran are actively seeking alternatives to the US dollar for international trade, particularly oil transactions.</li>
</ul>
<ul>
 <li><strong>Concerns Over US Policy:</strong> The Biden administration’s fiscal policies and the Federal Reserve’s monetary actions are perceived by some as jeopardizing US economic power and the dollar’s global reserve status.</li>
</ul>
<h2 class="wp-block-heading" id="h-saudi-arabia-s-move-beyond-the-petrodollar">Saudi Arabia’s Move: Beyond the Petrodollar</h2>
<p>While the end of the petrodollar agreement is significant, it doesn’t necessarily mean the US dollar will be completely sidelined in oil trade. However, it does signal a shift towards a more diversified landscape. This is where Project mBridge emerges as a potential game-changer.</p>
<h2 class="wp-block-heading" id="h-project-mbridge-a-multi-cbdc-platform-for-streamlined-payments">Project mBridge: A Multi-CBDC Platform for Streamlined Payments</h2>
<p>Project mBridge is a collaborative effort between central banks around the world, including the Bank of Thailand, the People’s Bank of China, United Arab Emirates and most recently, Saudi Arabia. This innovative platform aims to revolutionize cross-border payments by leveraging multi-central bank digital currencies (CBDCs) and distributed ledger technology (DLT).</p>
<h2 class="wp-block-heading" id="h-how-mbridge-could-disrupt-oil-trade-settlements">How mBridge Could Disrupt Oil Trade Settlements</h2>
<p>mBridge presents several advantages that could disrupt the traditional oil trade settlement system:</p>
<ul>
 <li><strong>Multi-Currency Settlements:</strong> Unlike the limitations of the petrodollar system, mBridge allows for oil to be traded and settled in various currencies, such as the Chinese Yuan or the Euro. This reduces reliance on the US dollar and strengthens the influence of other currencies in the global oil market.</li>
 <li><strong>Faster and Cheaper Transactions:</strong> Utilizing DLT, mBridge facilitates instant, peer-to-peer cross-border transactions, significantly reducing processing times and potentially lowering fees associated with traditional SWIFT settlements.</li>
</ul>
<h2 class="wp-block-heading" id="h-a-multi-polar-currency-future-for-oil">A Multi-Polar Currency Future for Oil</h2>
<p>The combined effects of the weakening US dollar, de-dollarization efforts, and the emergence of mBridge point towards a future where oil trade is no longer dominated by a single currency. This multi-polar currency environment could involve:</p>
<ul>
 <li><strong>The Rise of the Petro-Yuan</strong>: China, the world’s largest oil importer, actively pushes for the Yuan to be used in oil deals, potentially strengthening its position as a global reserve currency.</li>
</ul>
<ul>
 <li><strong>The Role of Digital Currencies:</strong> Cryptocurrencies like Bitcoin, with their decentralized nature, might find increased use in international trade, particularly by nations seeking to bypass traditional financial systems.</li>
</ul>
<h2 class="wp-block-heading" id="h-a-turning-point-not-an-ending">A Turning Point, Not an Ending</h2>
<p>The expiration of the petrodollar agreement and the rise of Project mBridge mark a turning point in oil settlements. The future is likely to be multi-polar, with various currencies vying for dominance. This development has far-reaching implications for the global financial landscape, particularly within the oil market. As mBridge continues to evolve, its impact on the future of oil settlements will become clearer.</p>
<p>The post <a href="https://www.unlock-bc.com/124619/end-of-the-petrodollar-future-oil-currencies/" rel="noopener noreferrer nofollow">The End of the Petrodollar? A Closer Look at the Future of Oil Settlements</a> appeared first on <a href="https://www.unlock-bc.com" rel="noopener noreferrer nofollow">UNLOCK Blockchain</a>.</p>

The End of the Petrodollar? A Closer Look at the Future of Oil Settlements

Table of Contents

UNLOCK_ENG

Other articles published on Jun 14, 2024

Mallconomy To Offer Metaverse Shopping Experience Users Can Browse on Any Device

XRP Price Uncertainty Raises As Whales Shuffle 118M Coins, What’s Next?

How to Make Money with the Free Cloud Mining Platform GDMining

Price analysis 6/14: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, SHIB, AVAX

OKX Ventures Partners with SOFA.org for DeFi Settlements

Beeple’s Latest Artwork Features Andrew Tate And Iggy Azalea

Join our free newsletter for daily crypto updates!