Stablecoins, Statecraft and the Genius Act in Reinforcing US Dollar Hegemony
The US dollar’s hegemony is under scrutiny amid debates over its potential decline, fuelled by the recent withdrawals of sovereign investments from US Treasuries. Countries like England, China and India have reduced holdings (Nagar Citation2025). India’s holdings have hit a five-year low to US$174 billion (Times of India Citation2026), and the Danish Pension fund plans to withdraw US$100 million (Reuters Citation2026)—signalling de-dollarisation pressures. Geopolitical rivals, like China and Russia, are pushing alternatives, and the BRICS is keen to operationalise seamless cross-border payments (Kalra and Ohri Citation2026) that bypass Swift. However, predictions of imminent demise are overstated, as the dollar’s entrenchment in global plumbing—like the US$100+ trillion FX swaps market—makes replacement costly and difficult (Blustein Citation2026).
- Meera Nangia |
- March-April 2026 |
