By Namith DP | July 10, 2025
Introduction: Global Currencies Are Entering a New Era
The dominance of the U.S. dollar is no longer absolute. Its share of global reserves has fallen to 58.9% (IMF, 2024), while countries like China, India, and Brazil are expanding their currencies’ global roles. At the same time, over 130 central banks are exploring or piloting digital currencies (CBDCs), reshaping how money moves across borders.
This article examines the top 10 currencies expected to gain global influence through the 2030s. Each is assessed based on:
- Reserve and trade usage
- CBDC progress and payment innovation
- Economic and institutional strength
In a fragmented, tech-driven world, understanding the rise of regional and digital alternatives is crucial. These currencies won’t replace the dollar—but they are redefining the future of international finance.
Part A: Currency Power Plays—Where the Future of Money Is Headed
As we enter a new decade marked by geopolitical turbulence, de-dollarization efforts, and evolving monetary technologies, global currencies are facing unprecedented scrutiny. From central bank digital currencies (CBDCs) to the recalibration of international trade alliances, the next ten years will define how money functions in a multipolar world.
A few ways to determine the most influential currencies of the coming decade are-
- Macroeconomic indicators such as GDP growth, inflation stability, and foreign reserves
- Political and regulatory factors influencing monetary policy
- Adoption of digital infrastructure and CBDC development
- Currency usage in global trade and sovereign reserves
This list is not speculative—it is based on multiple sources including the International Monetary Fund (IMF), Bank for International Settlements (BIS), World Bank, and central banks of major economies. Each currency’s potential was evaluated using quantitative metrics and forward-looking policy frameworks.
Why This List Matters
According to the IMF’s 2024 Currency Composition of Official Foreign Exchange Reserves (COFER) report:
- The U.S. dollar still dominates, accounting for 58.9% of global reserves.
- The euro holds 19.9%, followed by the Japanese yen and British pound.
- However, new entrants and policy innovations are reshaping this dominance.
Central banks are diversifying their reserves. Countries like China and Russia are reducing their exposure to the dollar while promoting regional alternatives. At the same time, fintech adoption is encouraging governments to upgrade outdated systems, making some currencies more globally viable than ever before.
#1 — United States Dollar (USD)
Status: Dominant Reserve Currency, Global Trade Backbone
- Reserve Share: 58.9% of global FX reserves (IMF, Q4 2024)
- SWIFT Usage: 42.6% of global payments (SWIFT, June 2025)
- Digital Dollar Status: No official CBDC; Fed exploring wholesale options via Project Hamilton
Despite declining marginally in dominance, the U.S. dollar remains the world’s anchor currency. It is the most traded and most held reserve currency, used in over 88% of global forex transactions (BIS, 2022 Triennial Survey).
Key Drivers:
- Deep, liquid capital markets
- Global trust in U.S. institutions and regulatory transparency
- Strong alignment with international trade pricing (oil, commodities)
Challenges:
- Political gridlock in fiscal policy
- National debt nearing $36 trillion (U.S. Treasury, July 2025)
- Slow progress in CBDC development
#2 — Chinese Yuan Renminbi (CNY)
Status: Rising Strategic Challenger
- Reserve Share: 3.1% (IMF COFER, Q4 2024)
- SWIFT Usage: 4.2% (June 2025), now the 5th most-used payment currency
- CBDC Status: e-CNY in pilot use across 25 cities, >260 million wallets issued (PBoC, April 2025)
Beijing’s long-term strategy to internationalize the yuan is reshaping regional trade and investment flows. Through the Belt and Road Initiative, China continues to settle an increasing number of contracts in CNY, especially in Asia and Africa.
Key Drivers:
- Bilateral trade agreements with over 70 countries to settle in CNY
- Strategic promotion via institutions like the Asian Infrastructure Investment Bank (AIIB)
- Advanced CBDC infrastructure with retail and wholesale pilots
Challenges:
- Capital controls and opaque regulatory frameworks
- Limited convertibility deters private investors
- Political risk and data transparency issues
#3 — Euro (EUR)
Status: Resilient but Under Pressure
- Reserve Share: 19.9% (IMF COFER, Q4 2024)
- SWIFT Usage: 32.1% (June 2025)
- CBDC Status: Digital euro in final design phase, limited pilot to launch in 2026 (ECB)
The euro remains a powerful regional currency with strong trade backing, but it has failed to challenge the dollar on a structural level. The European Central Bank (ECB) is now prioritizing digital infrastructure to future-proof its role.
Key Drivers:
- Strong legal frameworks and institutional trust
- Trade surplus economy and low inflation volatility
- Unified monetary policy across 20 member states
Challenges:
- Political fragmentation in EU policymaking
- Inconsistent fiscal policies among member countries
- Slower rollout of CBDC compared to Asia
#4 — Japanese Yen (JPY)
Status: Safe-Haven Asset, Regional Stability Anchor
- Reserve Share: 5.5% (IMF COFER, Q4 2024)
- SWIFT Usage: 2.9% (June 2025)
- CBDC Status: Digital yen pilot underway, expected public use in 2026 (Bank of Japan)
Despite Japan’s demographic decline and deflationary pressures, the yen remains one of the most stable and trusted global currencies. The yen’s safe-haven appeal increases during geopolitical tensions.
Key Drivers:
- Low volatility and strong historical trust in monetary policy
- Deep bond markets and global investment appeal
- BoJ’s cautious but deliberate CBDC pilot
Challenges:
- Stagnant GDP growth and aging population
- Mounting fiscal deficits
- Weak inflation momentum, though recent policies are tackling this
#5 — Indian Rupee (INR)
Status: Emerging Contender with Regional Ambitions
- Reserve Share: Not yet in top 5 (below 1%, IMF COFER 2024)
- SWIFT Usage: Below 1%
- CBDC Status: e-Rupee in pilot stage; RBI launching phased retail and wholesale rollouts (RBI, June 2025)
India is pushing hard to increase the international use of the rupee, especially in bilateral trade with neighboring and strategic partner countries. Its high GDP growth rate and demographic dividend are positioning it as a long-term player.
Key Drivers:
- GDP growth forecast at 6.7% annually through 2030 (World Bank)
- Trade settlements in rupee with UAE, Russia, Sri Lanka, and Bangladesh
- UPI (Unified Payments Interface) exported to countries like Singapore and France
Challenges:
- Current account deficits and volatile oil imports
- Relatively low reserve currency appeal
- Underdeveloped bond markets and regulatory delays in full CBDC deployment
Part B: Strategic Shifts and Regional Powerhouses
#6 — Swiss Franc (CHF)
Status: Ultra-Stable Reserve Currency
- Reserve Share: ~0.2% of global FX reserves (IMF COFER, Q4 2024)
- SWIFT Usage: ~0.5% of global transactions (SWIFT, June 2025)
- CBDC Status: Project Helvetia Phase III in pilot, with focus on wholesale CBDC (Swiss National Bank, May 2025)
The Swiss franc’s role as a safe-haven asset is well-established. Despite its relatively small footprint in global trade, its reputation for low inflation and macroeconomic stability ensures high trust during financial turbulence.
Key Drivers:
- Persistent low inflation (annualized CPI: 1.3% as of June 2025)
- Strong current account surplus and foreign reserves
- Independent and highly credible central bank policies
Challenges:
- Limited scope for internationalization due to Switzerland’s modest trade volume
- Lower relevance in global payment systems
- Minimal CBDC traction on retail side
The SNB’s digital currency efforts focus primarily on financial institutions, with no current plans for retail rollout, maintaining its conservative monetary stance.
#7 — Singapore Dollar (SGD)
Status: Regional Trade Hub and Financial Anchor
- Reserve Share: Not reported separately by IMF; minor percentage
- SWIFT Usage: Less than 0.5%
- CBDC Status: Retail CBDC tested in limited pilots; focus now on cross-border wholesale platforms (MAS, 2025)
Singapore has established itself as Southeast Asia’s financial and trade nucleus. The Monetary Authority of Singapore (MAS) emphasizes infrastructure-led innovation, particularly through Project Ubin and Project Dunbar—cross-border digital currency collaborations.
Key Drivers:
- Strong fiscal surplus and AAA-rated economy
- Leading role in cross-border CBDC research with BIS Innovation Hub
- High levels of digital banking adoption (more than 92% population digital payment access)
Challenges:
- Small domestic economy limits reserve currency ambition
- No official retail CBDC in public circulation
- Vulnerable to external demand shocks due to trade openness
Singapore’s currency is increasingly used for trade invoicing in Asia, particularly as supply chains diversify out of China.
#8 — Canadian Dollar (CAD)
Status: Commodity-Linked Currency with Stable Outlook
- Reserve Share: ~2.1% (IMF COFER, Q4 2024)
- SWIFT Usage: ~1.4%
- CBDC Status: Bank of Canada in development phase; public consultations ongoing (2025)
The Canadian dollar continues to attract reserve interest due to its resource-backed fundamentals and economic integration with the United States. It serves as a key secondary reserve currency, especially for commodity-exporting nations.
Key Drivers:
- Stable inflation (2.1% YoY in Q2 2025) and high central bank credibility
- Economic resilience via energy, lumber, and agricultural exports
- Active exploration of a retail CBDC (Digital Canadian Dollar)
Challenges:
- High household debt ratio (~180% of disposable income, StatsCan 2025)
- Vulnerability to U.S. demand fluctuations
- Limited use in bilateral trade outside of North America
Canada’s position as a G7 economy with a strong regulatory track record helps maintain investor confidence even as its international currency role remains modest.
#9 — Brazilian Real (BRL)
Status: Latin America’s Digital Pioneer
- Reserve Share: Below 0.1% (IMF COFER, 2024)
- SWIFT Usage: Less than 0.3%
- CBDC Status: Drex (Digital Real) launched pilot in late 2024; full rollout expected in 2025 (Banco Central do Brasil)
Brazil’s Digital Real project, now named Drex, is one of the most advanced CBDC initiatives in Latin America. The country is using it to digitize public services, streamline financial inclusion, and improve tax compliance.
Key Drivers:
- Rapid digital financial adoption; 84% of adults use digital payment platforms
- Integration with PIX (real-time payment system with >150 million users)
- Regional leadership in fintech regulation and sandbox testing
Challenges:
- Inflationary pressures (5.4% YoY in June 2025)
- Political volatility and fiscal deficits
- Low investor confidence due to unpredictable regulatory changes
The BRL’s international role remains small, but Brazil’s fintech and CBDC leadership position it as a future regional trendsetter.
#10 — United Arab Emirates Dirham (AED)
Status: Strategic Petro-Finance Lever
- Reserve Share: Not separately reported by IMF
- SWIFT Usage: Minimal but growing due to regional trade flows
- CBDC Status: Project Aber with Saudi Arabia completed pilot; UAE now part of mBridge, a cross-border CBDC collaboration with China, Hong Kong, and Thailand (BIS Innovation Hub, 2025)
The UAE dirham is becoming a key player in energy-financial settlements, especially in non-dollar oil contracts with China and India. The UAE is investing heavily in blockchain infrastructure to digitize both domestic and cross-border transactions.
Key Drivers:
- Strategic role in oil and LNG trade diversification
- Pegged to the U.S. dollar, providing exchange rate stability
- Leadership in regional CBDC cooperation via mBridge
Challenges:
- Limited scale of domestic financial market
- Pegged regime limits monetary policy independence
- Regional geopolitical risk exposure
While it does not aspire to be a global reserve currency, the dirham’s utility in multilateral energy transactions is increasing significantly.
Global Trends Shaping the Next Decade
To understand why these currencies matter, consider the structural shifts redefining international finance:
1. De-Dollarization
Countries like China, Russia, and Iran are creating alternate payment systems to reduce dollar exposure. The BRICS bloc is exploring a joint currency framework, although implementation faces major legal and economic hurdles.
2. Rise of CBDCs
According to the BIS CBDC Tracker (2025):
- 134 countries are exploring or piloting CBDCs.
- Over 19 countries have launched pilots.
- CBDCs are seen as essential for financial inclusion, cross-border efficiency, and monetary control.
3. Geopolitical Realignment
The Ukraine war, U.S.-China tensions, and energy realignments are affecting currency decisions. For example, India-Russia oil trade bypasses the dollar through INR-RUB settlement.
Key CBDC Collaborations to Watch
These multilateral projects are reshaping cross-border currency dynamics:
- mBridge (China, UAE, Thailand, Hong Kong): Enables direct cross-border settlement without SWIFT. Pilot trades reached $22 million in Q2 2025.
- Project Dunbar (Singapore, Malaysia, Australia, South Africa): Promotes shared settlement infrastructure via distributed ledger technology (DLT).
- Project Icebreaker (Israel, Sweden, Norway): Enables CBDC use for low-cost remittances across small economies.
These projects reduce reliance on dollar-clearing systems and enable near-instant international settlements without intermediaries.
Shifts in Reserve Holdings
A look at recent diversification trends from central banks:
| Country | Notable Shift in FX Reserves (2022–2024) |
|---|---|
| Russia | Cut USD share from 21% to below 10% |
| China | Increased CNY-denominated reserves in Africa |
| India | Added AED, SGD, and JPY to its reserve basket |
| Brazil | Diversified into EUR and CNY |
(Source: IMF Annual Report on Reserve Management, 2025)
Part C: The Future of Global Currency Leadership
Will the U.S. Dollar Maintain Global Dominance?
Despite persistent speculation about de-dollarization, no single currency currently matches the liquidity, convertibility, and institutional trust underpinning the U.S. dollar. However, its dominance is being gradually diluted—not from direct replacement, but through multipolar diversification and targeted alternatives.
Structural Strengths:
- Deep capital markets backed by the world’s largest economy (GDP: $28.6 trillion in 2024, World Bank)
- Widespread use in commodity pricing, sovereign debt issuance, and central bank reserves
- U.S. Treasury securities remain the global benchmark for safe-haven assets
Emerging Risks:
- National debt projected to exceed $40 trillion by 2029 (Congressional Budget Office, 2025 outlook)
- Increasing weaponization of the dollar via financial sanctions (e.g., Iran, Russia), pushing states to seek systemic alternatives
- Technological lag in CBDC development compared to Asian economies and Europe
While dollar dominance is unlikely to collapse outright, the next decade will likely see a shrinking share of global reserves and trade settlements as alternative infrastructures mature and economic power rebalances.
The Rise of Currency Blocs
Countries are increasingly gravitating toward regional trade and monetary blocs to shield themselves from currency volatility, political interference, and SWIFT-based dependencies. These blocs are shaping a multipolar global currency system.
Key Examples:
- BRICS Currency Basket (Proposed)
An ongoing initiative among Brazil, Russia, India, China, and South Africa to reduce dollar dependency. While no formal BRICS currency exists yet, several nations within the group are settling oil, arms, and infrastructure deals in local currencies. Note: A “joint BRICS currency” is still speculative and faces legal, monetary, and political obstacles to implementation. - ASEAN Currency Swaps
The Chiang Mai Initiative Multilateralization (CMIM) allows ASEAN+3 countries to access dollar-independent emergency liquidity through multi-country swap arrangements, reducing dependency on the IMF and external lenders. - African Continental Free Trade Area (AfCFTA)
The African Union is exploring pan-African payment platforms such as PAPSS (Pan-African Payment and Settlement System) to enable cross-border transactions in local African currencies.
These models reduce friction in intra-regional trade and open up new alternatives to dollar-clearing systems that dominate the global financial architecture.
Digital Disruption: Beyond CBDCs
While central banks pursue state-backed digital currencies, stablecoins and tokenized bank deposits are also emerging as influential tools in cross-border finance. They are being integrated into both public and private sector financial operations.
Key Developments:
- JP Morgan’s JPM Coin: Used for institutional transfers among corporate clients, handling over $1 billion in daily volume (JPMorgan, Q1 2025 earnings report)
- Circle’s USDC and Tether’s USDT: Widely used in digital asset trading and in emerging markets facing local currency volatility
- Real-time settlement platforms: Projects like FedNow (U.S.), PIX (Brazil), and UPI (India) are integrating with international corridors for near-instant, low-cost transactions
The BIS 2025 Report on Innovation in Payments highlights that tokenized assets and hybrid payment rails could interact with sovereign currencies rather than replace them, reshaping how value is transferred globally.
Investor Implications
Portfolio managers and institutional investors are already adapting to this diversified currency landscape. According to the 2025 BlackRock Global Investor Survey:
- 48% of respondents have increased non-dollar currency exposure since 2022
- 33% are actively tracking CBDC and tokenized payment developments
- Demand for currency-hedged ETFs is at a 7-year high, particularly in Asia and Europe
Investors are not only hedging currency risks but also aligning allocations with countries demonstrating monetary innovation, regulatory clarity, and strong fiscal fundamentals.
Currency Ranking Summary: 2025–2035 Outlook
| Rank | Currency | Role | Strengths | Risk Factors |
|---|---|---|---|---|
| 1 | USD | Dominant Global Reserve | Liquidity, trust, markets | Fiscal imbalance |
| 2 | CNY | Challenger | CBDC lead, trade links | Capital controls |
| 3 | EUR | Secondary Anchor | Institutional trust | EU fragmentation |
| 4 | JPY | Safe Haven | Monetary credibility | Stagnation risk |
| 5 | INR | Rising Player | Growth, digital infra | Deficits, volatility |
| 6 | CHF | Ultra-Stable | Low inflation, safe-haven | Small market |
| 7 | SGD | Regional Leader | Fintech strength | Limited scale |
| 8 | CAD | Resource-backed | Stability, G7 backing | US dependence |
| 9 | BRL | Digital Pioneer | Fintech adoption | Inflation, politics |
| 10 | AED | Energy Hub | Peg stability, CBDC role | Geopolitical risk |
Policy Recommendations for Central Banks
For central banks navigating the evolving terrain, the following strategic priorities are essential:
1. Accelerate CBDC Deployment with Interoperability
Central banks should design CBDCs with cross-border compatibility, leveraging platforms like mBridge, Project Helvetia, or Project Dunbar. Regional test cases show that interoperability—not mere issuance—determines real-world impact.
2. Improve Monetary Transparency
Currencies that gain international trust typically come from transparent policy environments. Enhancing inflation-targeting frameworks, publishing real-time macroeconomic data, and adhering to global accounting standards build sustainable investor confidence.
3. Strengthen Local Capital Markets
International usage of a currency is strongly correlated with the depth and accessibility of domestic bond markets. Countries like India and Brazil must broaden participation and reduce friction to attract long-term institutional flows.
4. Adopt Digital Payment Infrastructure
Even without full CBDC rollout, promoting instant payment systems and digitized remittances increases a currency’s utility in both local and regional trade ecosystems. India’s UPI, for example, now powers real-time payments in Singapore, UAE, France, and other partner economies.
What This Means for Global Trade
By 2035, the global monetary system is likely to operate under a pluralist model:
- The U.S. dollar remains the primary global reserve but with reduced dominance.
- The Chinese yuan expands via digital infrastructure, commodity trade, and regional alliances.
- New entrants like the Indian rupee and Singapore dollar gain strategic use cases in regional corridors.
- Digital networks and smart-contract settlement rails replace physical cash as the default medium of exchange for cross-border B2B transactions.
A multipolar currency world will make international trade more complex—but also more resilient. Countries will gain greater strategic leverage in deciding how and with whom to trade, based on shared infrastructure and currency alignment—not just legacy dominance or geography.
Conclusion: The Currency Landscape of 2035
The next decade will not see the fall of the U.S. dollar—but it will usher in a more fragmented, tech-driven, and policy-sensitive global currency system.
Winners will be countries that:
- Maintain macroeconomic discipline
- Invest in CBDC interoperability and cross-border infrastructure
- Strengthen local capital markets and liquidity channels
- Embrace transparent and reliable monetary governance
Currencies will no longer win global trust through size or legacy alone. In the future, technological adaptability, regulatory clarity, and trade utility will define monetary leadership in a decentralized, digital-first global economy.
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Good insight.