Currency Competition in Transition: De-dollarisation, Gold, Digital Money, and the Future of Global Trade and Regional Cooperation

Abstract

This paper discusses the growing influence of geopolitical developments on the international financial and monetary system, with particular emphasis on the changing role of gold as a reserve asset. The presentation explains current developments in global gold demand and supply, the increasing importance of emerging markets, and the sustained rise in central bank gold purchases since 2022 following heightened geopolitical tensions. It further examines how central banks are strengthening reserve diversification by increasing gold holdings, adjusting reserve storage strategies, and gradually reducing dependence on traditional reserve assets while maintaining the continued importance of the US dollar. Attention is given to Indonesia's strategic position as one of the world's leading gold producers and to opportunities for strengthening the domestic gold ecosystem through bullion banking and financial market development. The presentation also discusses the growing role of digital assets, cryptocurrencies, and stablecoins within the international financial system. It concludes that geopolitical uncertainty is accelerating reserve diversification, with gold increasingly supporting financial resilience while de-dollarisation remains a gradual rather than abrupt process.