Amid Trump's tariffs and Asia's digital pivot, the quiet end of dollar dominance is under way

As countries pursue digital alternatives and build new trade rails, we could be witnessing early signs of de-dollarisation.

- Sam Ahmed

Countries across Asia and the Global South are quietly redrawing the contours of global finance amid growing geopolitical tensions and economic volatility.

The increasing use of sanctions, tariffs, and extraterritorial financial controls by the United States has raised growing unease over continued reliance on the US dollar. Once viewed as a stable and liquid medium of exchange, it is now increasingly seen as a source of volatility and a means of oversight which goes beyond the control of sovereign nations and global corporations.

Several governments have been adopting prudent measures to decouple from external shocks, volatility and uncertainty that increasingly characterise today's global marketplace. The strategy has been to build alternative trading blocs and payment corridors with like-minded partners committed to maintaining cross-border trade and commerce—supported by emerging technologies, such as blockchain and digital currencies.

These offer advantages: low cost, real-time settlement, and for some countries, the ability to sidestep politically driven restrictions tied to the dollar and legacy dollar-clearing infrastructure, which allows the US government full visibility on global dollar-based transactions.

A notable example of an alternative trading bloc is the Brics grouping, which now comprises 10 countries. China's trade with fellow Brics nations, surpassing US$648 billion (S$850 billion), underscores the bloc's growing economic heft. Now among the world's largest trade alliances, the grouping is also exploring the launch of a digital currency, potentially backed by member-state central bank digital currencies (CBDCs) and commodities such as gold.