What is US dollar?
US dollar
The US dollar is the official currency of the United States, issued by the Federal Reserve. In 2026, analysts and commentators have debated its role as a global reserve asset, with some noting shifts in central bank preferences and others cautioning against extreme predictions.
How it developed
- Jun 2026 – Bob Sheehan dismissed the idea that the dollar will fall to zero due to fiscal concerns, calling such a view unrealistic.
- Aug 2026 – Adam Taggart observed that the traditional crisis reaction of buying dollars and Treasuries is no longer happening.
- Aug 2026 – Wellum noted that central banks now hold gold as their largest reserve asset, surpassing the US dollar.
In the evidence
Every line below is attributed to a named speaker.
Adam Taggart on the dollar and Treasury safe-haven reaction function breaking down.
“The reaction function to any crisis was, you know, people buy dollars, they buy treasuries. That's not happening anymore.”Adam Taggart · 19 Aug 2026
Central banks now hold gold as their largest reserve asset, surpassing the U.S. dollar, a reversal of the long-standing dollar-dominant reserve order.
“The central banks now their largest reserve asset is gold over and above the US dollar.”Wellum · 14 Aug 2026
Wellum on the shift in global reserve asset preference away from the dollar.
“The central banks now their largest reserve asset is gold over and above the US dollar.”Wellum · 14 Aug 2026
The dollar collapsing to zero from fiscal stress is not a realistic macro scenario because currency valuation is relative and structural demand for Treasuries persists.
“There's some people in macro who are kind of like oh the dollar is going to fall to zero because of this fiscal and the only way to do it is to value like I don't think that's a realistic way to view the world.”Bob Sheehan · 29 Jun 2026