Global reserve currency system instability accelerates the transition to a decentralized economic structure

Notable analysis was presented at the Token 2049 Conference. Economic analyst Zoltán Pozar diagnosed that the global economy is rapidly transitioning from a centralized structure to a decentralized global economic system.

Fracture of the Dollar-Centric System and the Emergence of New Economic Blocs

According to Pozar’s analysis, structural changes in the U.S. economy are shaking the status of the dollar as the reserve currency. The shift from a consumption-driven economic model to a production-oriented economy is underway, which is directly impacting dollar hegemony.

At the same time, new changes are being detected within the international order. Moving away from the existing unipolar order, emerging ‘Eastern’ and ‘Western’ alliances are forming, leading to a diversification of global economic blocs.

Advanced Economies Face Structural Pressures

Major advanced economies such as Europe, Japan, and South Korea are under economic pressure due to high interest rates and rising trade tensions. Pozar predicted that these factors could erode the international trust in the dollar over the medium to long term.

Weakening Confidence in Fiat Currencies Strengthens Safe Asset Preference

As confidence in fiat currencies gradually declines, changes are also appearing in investors’ asset allocation strategies. In this environment, Pozar evaluates gold as the most resilient safe asset, and he foresees that the importance of real assets will become even more prominent in the transition to a decentralized global economy.