U.S. Dollar's Global Role Challenged by Fidelity Study and China Tech Rise

Fidelity Digital Assets argues that the dominance of the U.S. dollar is waning as investors look to diversify into cryptocurrencies, stablecoins tied to other currencies, and blockchain‑linked assets. The firm highlights macro‑economic shifts such as the gradual reduction of dollar‑centric reserves, the growth of decentralized finance, and broader adoption of blockchain technologies, urging a broader crypto portfolio beyond USD‑linked assets.

Separately, Maria Vassalou of the Pictet Research Institute warns that China's emergence as a technology superpower poses an existential challenge to the United States. She notes that the post‑World‑War II financial architecture—centered on U.S. dollars and Treasury securities—may erode, making U.S. Treasuries less effective as safe‑asset diversifiers. Investors are therefore urged to lower duration, increase currency diversification, and reconsider heavy concentration in U.S. equities, as the global shift could raise overall portfolio risk.