Janet Yellen Warns of U.S. Dollar Decline as Bitcoin and Crypto Gain Traction
The U.S. Treasury secretary, Janet Yellen, has issued a stark warning that countries worldwide are shifting away from the U.S. dollar, citing concerns over the massive $34 trillion U.S. debt and the rising influence of bitcoin and other cryptocurrencies. Yellen expressed her apprehension that the escalating U.S. debt could lead to a collapse, with bitcoin slowly eroding the dominance of the dollar.
Despite a “critical” Federal Reserve warning, the bitcoin price has surged over the past year, defying expectations. Speculation around former U.S. president Donald Trump potentially returning to the White House in November has also contributed to the cryptocurrency’s rise.
Yellen’s comments come as the radical Project 2025 policy plan positions bitcoin on a collision course with gold. She highlighted the potential impact of U.S. financial sanctions on the dollar’s global role, especially as countries like Russia show a growing interest in bitcoin and crypto.
The U.S. has imposed strict financial sanctions on countries like Russia and Iran in recent years, leading to accusations of weaponizing the dollar and alienating emerging economies. The Brics group, consisting of major developing countries, has been exploring ways to reduce reliance on the western financial system.
Experts suggest that the U.S. dollar’s international status could weaken over time due to the impact of western financial sanctions. Russia’s central bank has even encouraged the use of bitcoin and crypto to counter Western sanctions related to the Ukraine conflict.
Amidst these developments, some bitcoin and crypto traders are betting on the cryptocurrency’s price surging to new heights ahead of the U.S. election in November. Analysts predict a potential all-time high for bitcoin in August, with projections of reaching $100,000 by election day.
The growing support for Trump within the bitcoin and crypto community, coupled with his pro-crypto stance, has set him apart from the Biden administration’s anti-crypto policies. As the debate over the future of the U.S. dollar and the rise of cryptocurrencies intensifies, the financial landscape is poised for significant shifts in the coming years.
