Over the past decade, the United States has begun reconsidering its role in the international order, creating major tensions with allies through tariffs, conflicts in the Middle East, and the weaponization of the SWIFT payment system. Against this backdrop, the article argues that small, well-governed countries with open capital markets and floating exchange rates could benefit from growing demand for alternatives to the U.S. dollar. Three key factors are identified: these countries can offer similar stability features, stablecoins and CBDCs facilitate international use of their currencies, and the inability of small nations to weaponize their currencies paradoxically becomes an advantage for investors. The share of foreign reserves held in Australian and Canadian dollars has increased substantially over the past ten years, illustrating this emerging trend.
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