Core Viewpoint - The article discusses the declining health of the US dollar, attributing its weakening to factors beyond tariffs and highlighting the rapid changes in global payment systems that are diminishing the dollar's dominance [1][2]. Group 1: Dollar's Current Status - The US dollar is losing its strength, a trend that has persisted for nearly a decade, with a shift in focus from traditional macroeconomic indicators to the emergence of new payment systems [2][3]. - The US dollar has historically been the hub for nearly 90% of currency exchanges, but this centrality is being challenged as countries develop alternative payment systems [2][3]. Group 2: Financial System Changes - The financial system established to maintain dollar hegemony is gradually unraveling, with institutions like SWIFT losing influence as new systems are adopted [3][4]. - Recent developments include the UAE central bank joining a new payment system and Bangladesh opting for non-dollar transactions for international projects, indicating a shift away from dollar reliance [3][4]. Group 3: Technological Innovations - Financial innovations, including blockchain technology, are reducing the costs and time associated with creating new transaction systems, facilitating a move away from the dollar [4][5]. - The number of cross-border central bank digital currency projects has doubled since the onset of the Russia-Ukraine conflict, providing countries with faster transfer options that bypass US banks [5][6]. Group 4: Future of Currency Competition - The competition for future currency dominance hinges on digitalization, with over 300 central banks globally engaged in digital currency initiatives, compared to fewer than 20 within the Federal Reserve [6]. - To maintain the dollar's status, the US must innovate and collaborate with European allies to strengthen existing financial frameworks like SWIFT [5][6].