Bitcoin Will Soar as U.S.-Saudi Petrodollar Deal Ends, Leading to Crypto Adoption.
Saudi Arabia's decision not to renew its long-standing petrodollar agreement with the United States represents a fundamental shift in global financial balances. For more than 50 years, the petrodollar system has supported international trade, selling oil only in USD. Saudi Arabia's move to diversify payment methods including cryptocurrencies and other global currencies such as Euro, Yen, Yuan marks a critical moment for global finance.
This policy change is not just a political maneuver, but a strategic economic decision in line with Saudi Arabia's vision of reducing economic dependence on the US dollar. Being part of Project mBridge, a China-led cross-border central bank digital currency (#CBDC ) trial, underscores the country's commitment to exploring digital currencies for international trade. This move could accelerate the “de-dollarization” trend that is already gaining momentum globally and significantly impact the dominance of the US dollar.
As Saudi Arabia opens up to alternative payment methods, Bitcoin and other cryptocurrencies are poised to benefit. Bitcoin's decentralized structure and limited supply make it an attractive asset in times of rising inflation and currency depreciation. Crypto analysts emphasize that the termination of the petrodollar agreement could lead to an increase in USD printing, which could trigger inflation and make Bitcoin a more attractive investment.
The end of the US-Saudi petrodollar deal represents a significant departure from past economic norms. This agreement, announced in 1972, played a fundamental role in maintaining the global dominance of the US dollar. Saudi Arabia's decision not to renew this agreement could have wide-ranging effects on global financial markets by shifting towards multi-currency transactions. The Bank for International Settlements (BIS) confirms Saudi Arabia's full involvement in Project mBridge and its commitment to diversifying its economic relations.
$BTC $ETH
