Deputy Chairman of Russia’s Security Council Dmitry Medvedev highlighted the risks of a dollar collapse and the possible global consequences. According to him, if the “dollar bubble” bursts, the world will hear a loud “bang,” after which everyone may be on edge. As he emphasized, Russia has no interest in destroying the dollar system, as the impact of such an “explosion” would affect all participants in the global economy.

Medvedev also drew parallels with the Soviet Union, suggesting that back then, a collapse of the US currency would not have mattered much. However, modern Russia, being part of global economic relations, must stay vigilant. In Medvedev’s viewpoint, the failure of the US dollar is only a matter of time. The world cannot rely solely on a single reserve currency, especially the one propped up by loans from other countries, he explained.

Time to start soft exit

Medvedev proposed a moderate phasing out of the dollar to avoid major shocks. This involves creating a balance of payment options and developing digital currencies. Meanwhile, Russia and other BRICS countries are forging ahead with de-dollarization, especially in light of frozen Russian reserves and anti-Russian sanctions. According to US Treasury Secretary Janet Yellen, such White House measures have forced countries to reconsider their use of the US dollar, though it is too early to speak about a complete withdrawal.

Rescue plan for US dollar

American policymakers are not sitting on the sidelines. Being the Republican nominee, Donald Trump announced that the authorities would make every effort to defend the dollar’s status. His team is even considering imposing 100% tariffs on imports from countries that are willing to abandon the US dollar, along with various traps for BRICS participants who are hesitant to trade in the US currency.