Janet Yellen Admits U.S. Dollar Collapse Fears as Trump Boosts Bitcoin for $4 Trillion Surge

Janet Yellen Acknowledges Significant U.S. Dollar Collapse Concerns as Trump Prepares Bitcoin for a $4 Trillion Surge

U.S. Treasury Secretary Janet Yellen has discreetly highlighted that countries worldwide are starting to move away from the U.S. dollar. The mounting $34 trillion U.S. debt is stirring fears of a collapse, with Bitcoin and other cryptocurrencies gradually eroding the dollar’s dominance.

Bitcoin’s value has surged over the past year, rising despite a “critical” Federal Reserve warning. This surge is partly driven by bettors who believe former U.S. President Donald Trump will win back the White House in November.

Currently, with the radical Project 2025 policy agenda placing Bitcoin on a direct path to rival gold, Yellen has voiced concerns that U.S. financial sanctions might reduce the dollar’s global influence. Meanwhile, Russia is encouraging the use of Bitcoin and other cryptocurrencies.

“We have very powerful sanctions that are available because of the important role of the dollar in international transactions,” Yellen stated during a House Financial Services Committee session this week.

“The more we utilize sanctions, the more nations seek methods to conduct financial transactions that don’t involve the dollar.”

The U.S. has imposed strict financial sanctions on Russia and Iran in recent years, leading to accusations of weaponizing the dollar. This has pushed the BRICS group of emerging countries away from the Western financial system.

Initially comprising Brazil, Russia, India, and China, the BRICS group has expanded to include South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. These key developing nations have formed an alliance to enhance their global influence.

U.S.-led Western financial sanctions “will have a notable impact on the international status of the U.S. dollar,” Zhao Qingming, a financial expert based in Beijing, told the Global Times. “In the short term, the U.S. dollar’s position should remain stable, but over time, its dominance may weaken.”

Earlier this month, Russia’s central bank advocated for the use of Bitcoin and other cryptocurrencies to counteract Western sanctions imposed due to the Ukraine conflict.

As global economic dynamics evolve, Janet Yellen’s caution underscores the growing uncertainties about the U.S. dollar’s supremacy. With Bitcoin and other cryptocurrencies gaining traction, especially with the endorsement of influential figures like Donald Trump, the financial landscape is set for significant transformations. The BRICS alliance further highlights the potential shift in global economic power, challenging traditional financial structures.