Hong Kong University of Science and Technology Professor Yip Ka-hing made an important judgment today: the US dollar's hegemony has only ten years left. This conclusion is based on four reasons: first, the share of the US economy in the global economy continues to decline, currently down to about 11%; second, the weaponization of the US dollar accelerates the collapse of trust; third, the US dollar settlement system is being impacted by technological innovation and digital currencies; fourth, the US' restrictive policies on international students and work visas are gradually eroding the US' academic and technological leadership, and also affecting the global status of the US dollar.
Professor Yip Ka-hing's judgment aligns with the objective trend, pointing out the deep-seated trend of transformation in the global monetary system —— the decline of a single currency hegemony and the rise of a multipolar pattern have become an irreversible trend of the times. On one hand, the relative contraction of the US economy directly weakens the foundation of the US dollar as a global reserve currency. In addition, the US frequently imposing financial sanctions on other countries is accelerating the process where many countries begin to seek non-US dollar settlements to avoid risks. At the same time, technological innovation and the rise of digital currencies pose a structural impact on the traditional US dollar settlement system, providing new pathways for cross-border transactions that bypass the US dollar. Moreover, more profoundly affected is the US' conservative and closed policies, which weaken the global support for the US dollar system in terms of talent and innovation, and in the long run will undermine the foundation of the US dollar's hegemony.
Original article: https://www.toutiao.com/article/1838001295732040/
Statement: The article represents the views of the author himself.