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<p>US Treasury Secretary Janet Yellen warned Congress on Monday. To expect a gradual decrease in the share of the dollar in global reserves. US debt.</p>



<h2 id="h-the-twilight-of-the-dollar">The twilight of the dollar</h2>



<p>However, the former Federal Reserve Chair attempted to reassure. By stating that <a href="https://www.cointribune.com/bitcoin-geopolitique-semaine-19/" target="_blank" rel="noreferrer noopener">there is no alternative</a> likely to completely supplant the greenback.</p><div class="my-4"><div class="ads ">
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<p>Members of Congress, nevertheless, expressed concern about the proliferation of sanctions. “<em>Shouldn’t we be more thoughtful about our sanctions, at the risk of creating paranoia that pushes countries to seek other currencies for transactions?</em>”</p>



<p>Janet Yellen <a href="https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408850" target="_blank" rel="noreferrer noopener">responded</a> that it should be “<em>accepted.” </em>Arguing further that escaping the dollar “<em>is much harder when we work together with our allies.</em>”</p>



<p>Congress then recalled that “<em>even countries like France are looking for other currencies,</em>” referring to a yuan-denominated gas contract signed by Total. This is well-known to the Treasury Secretary:</p>



<p>“<em>You know, France and some of our allies didn’t like us withdrawing from the JCPOA and imposing sanctions. But for most countries, there is no other solution but to use the dollar as a reserve currency.</em>”</p>



<figure class="wp-block-image size-full"><img decoding="async" width="580" height="512" src="https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-19-04.png" alt="" class="wp-image-609454" srcset="https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-19-04.png 580w, https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-19-04-300x265.png 300w" sizes="(max-width: 580px) 100vw, 580px"><figcaption class="wp-element-caption"><a href="https://twitter.com/albertherne/status/1668678747531231235" target="_blank" rel="noreferrer noopener">https://twitter.com/albertherne/status/1668678747531231235</a> / <a href="https://twitter.com/BitcoinNewsCom/status/1668671663989305364" target="_blank" rel="noreferrer noopener">https://twitter.com/BitcoinNewsCom/status/1668671663989305364</a></figcaption></figure>



<p>Regarding the share of the dollar in international reserves:</p>



<p>“<em>There has been some increase in other reserve assets. But that’s something you can expect in a growing global economy where there is a desire for diversification. We should expect, over time, a gradual increase in the share of other assets held by countries as reserves. It’s a natural desire for diversification. But the dollar remains by far the dominant reserve asset.</em>”</p>



<h2 id="us-debt-held-by-china">US debt held by China</h2>



<p>Congress then considered the scenario in which China invades Taiwan. In that case, China would dispose of its $859 billion in US Treasury bonds. The question was, “<em>Are you working with our allies and the Fed to deal with a situation where China would get rid of such a large volume of Treasury bonds overnight?</em>”</p>



<p>“<em>We don’t run exercises that take into account such a risk, but the US National Security Council is certainly concerned.</em>”</p><div class="my-4"><div class="ads ">
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<p>To which the congressman retorted. “<em>I encourage the Treasury to prepare and be ready to face this scenario and to work with the Fed and our allies.</em>”</p>



<p>We are indeed at a turning point. Even Africa is sending very clear signals in favor of abandoning the dollar:</p>



<figure class="wp-block-image size-full"><img decoding="async" width="588" height="658" src="https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-14-27.png" alt="" class="wp-image-609451" srcset="https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-14-27.png 588w, https://www.cointribune.com/app/uploads/2023/06/Capture-decran-du-2023-06-14-12-14-27-268x300.png 268w" sizes="(max-width: 588px) 100vw, 588px"></figure>



<p>Things could accelerate following the upcoming annual BRICS summit. Which will take place in South Africa at the end of August. Rumor has it that a new international reserve currency will be presented there.</p>



<p>The diversification of reserve assets is great news for Bitcoin. Most countries are still hesitant about this monetary UFO. But sooner or later, it will become clear that Bitcoin is the ultimate store of value. Especially in an inflationary world where:</p>



<ol>
<li>Interest rates shrink under the weight of debt;</li>



<li>Productivity (and thus yields) slows down due to growth limitations (peak oil).</li>
</ol>



<p>Don’t miss our article: <a href="https://www.cointribune.com/en/public-debts-a-risk-for-the-markets/" target="_blank" rel="noreferrer noopener">Public debts: A risk for the markets?</a></p>

Congress sees China selling off all US debt

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