The period of US dollar supremacy has come to an end, declares a seasoned Wall Street veteran who recently concluded a 54-year career.

The dominance of the US dollar in global finance and trade, a stronghold established since World War II, is perceived to be on the brink of decline, according to Dick Bove, an 83-year-old Wall Street veteran who recently retired after a 54-year career as a financial analyst. Bove predicts that China's economy will outpace that of the United States, attributing this shift to the outsourcing of US manufacturing to other nations. This outsourcing trend, in his view, has granted other countries increased control over international production, the global economy, and global monetary flows.

Bove also suggests that cryptocurrencies like bitcoin could play a role in filling the void left by the diminishing influence of the US dollar. Despite the fact that nearly 60% of international reserves are in dollar-denominated assets, there is a growing movement toward "de-dollarization" in various countries. This trend, especially evident after the US imposed sanctions on Russia following its invasion of Ukraine in 2022, involves nations exploring alternative currencies and assets, such as the Chinese yuan and bitcoin, for trade and payments.

Countries like Brazil, Argentina, India, and Bangladesh are among those actively considering options beyond the dollar. They aim to reduce reliance on the US currency due to concerns about its impact on other economies, its strength in pricing out imports for poorer countries, and the diminishing significance of the petrodollar, particularly as the US achieves energy independence through domestic shale oil and green energy production.

Bove, known for his contrarian perspective, emphasizes that analysts who dismiss the idea of a declining dollar are essentially clinging to the traditional financial system, likening them to "monks praying to money" and unwilling to challenge the status quo. With a career spanning 17 brokerages and notable foresight in predicting issues in the US housing sector that led to the 2008 financial crisis, Bove remains outspoken and assertive about the potential transformation in the global monetary landscape.