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Vladimir Putin Warns US Dollar Is Dying as Bitcoin Regains Safe-Haven Status

3 mins
Updated by Bary Rahma
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In Brief

  • Putin criticizes Biden's policies for undermining US dollar's global reserve currency status.
  • Sanctions and political use of USD lead to de-dollarization, with Russia shifting to yuan and ruble.
  • Amidst US debt concerns, Bitcoin gains traction as a potential safe haven and investment.
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Russian President Vladimir Putin has leveled a severe warning against the United States. He asserted that the Biden administration’s policies are effectively undermining the strength of the US dollar.

According to Putin, these actions are precipitating the decline of the US dollar’s status as the world’s reserve currency, a situation he describes as one of the “biggest strategic mistakes” by the White House.

Biden Is “Killing” the US Dollar

Vladimir Putin discussed a range of topics from Russia’s military actions in Ukraine to the growing field of artificial intelligence. This dialogue comes in the wake of the US declaring a “crypto emergency.” It also underscores the heightened tensions and the complex interplay between geopolitics and global finance.

The Russian leader pointed out that the weaponization of the US dollar in foreign policy has diminished its global standing. It has also led allies to reduce their US dollar reserves. This shift is part of a broader trend where countries are moving away from the US dollar in response to sanctions and political maneuvers.

“The dollar is the cornerstone of US power. It is the main weapon used by the US to preserve its power across the world. As soon as the political leadership decided to use the dollar as a tool of political struggle, a blow was dealt to this American power,” Putin said.

The sanctions, especially those imposed following Russia’s invasion of Ukraine, have significantly altered Russia’s foreign transaction landscape. The use of the US dollar and euro in Russia’s international dealings has plummeted from nearly 80% to 13%. Conversely, transactions in the Chinese yuan and the Russian ruble have surged, signaling a move towards de-dollarization.

This strategic pivot away from the US dollar is highlighted by the skyrocketing US debt, which now exceeds $34 trillion. Federal Reserve Chair Jerome Powell has flagged this debt level as “unsustainable,” echoing concerns about the US dollar’s viability as the global reserve currency.

“In the long run, the US is on an unsustainable fiscal path… That just means that the debt is growing faster than the economy… Effectively, we are borrowing from future generations,” Powell said.

Bitcoin Emerges as Safe Heaven

Amidst these economic uncertainties, Bitcoin has emerged as a beacon for investors seeking stability. Following a significant price drop in 2022, the price of Bitcoin has rebounded. Therefore, fueling debates about its potential as a safe-haven asset and a viable alternative to traditional currencies like the US dollar.

Investors and tech enthusiasts alike, including former Ark Invest CEO Cathie Wood, view Bitcoin’s resurgence as a critical counterpoint to the US dollar’s dominance. The comparison between Bitcoin and the US dollar is increasingly framed as a pivotal shift that could redefine the foundations of global finance.

“During the regional bank crisis in March [2023], Bitcoin shot up 40% as the Regional Bank index was imploding. Here again, the Regional Bank index is acting up and after a little bit of a correction after 11 ETFs were introduced, we are seeing Bitcoin catch a bid again. So this idea that it is a flight to quality or a flight to safety is reasserting itself here,” Wood explained.

Read more: Bitcoin Price Prediction 2024/2025/2030

The effectiveness of Bitcoin as a hedge against the US dollar has been a subject of analysis. Some indicators suggest an inverse correlation between Bitcoin’s value and the performance of the US dollar against a basket of major currencies. This relationship highlights Bitcoin’s potential role in diversifying investment portfolios and mitigating currency-related risks.

Top crypto platforms in the US | February 2024



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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.