The Asset-Backed Digital Currency (ABDC) as a U.S. Dollar Successor

The global financial system is undergoing a fundamental transformation, facing inflationary pressures, reserve currency fragmentation, and emerging digital monetary alternatives. The erosion of U.S. dollar dominance is accelerated by BRICS de-dollarization efforts, China's digital yuan (e-CNY) expansion, and IMF discussions on alternative reserve structures.

This whitepaper introduces the Asset-Backed Digital Currency (ABDC) as a strategic solution to preserve U.S. financial hegemony, stabilize monetary reserves, and integrate a digital reserve asset into global banking and trade infrastructure. ABDC’s design is based on a fully collateralized issuance model, mitigating inflationary risks while maintaining systemic liquidity stability.

Using Monte Carlo simulations, DSGE macroeconomic modeling, and financial stress testing, this paper assesses the potential stability of ABDC under macroeconomic shocks, suggesting mechanisms to mitigate speculative volatility and reinforce global trade settlements. A three-phase implementation roadmap outlines a structured transition from institutional adoption to full consumer-level integration, ensuring alignment with Federal Reserve policies, IMF Special Drawing Rights (SDRs), and BIS regulatory standards.

The findings suggest that ABDC is the optimal successor to the U.S. dollar, positioning the United States as the dominant force in the next era of monetary governance, while countering the development of state-controlled digital assets and multi-currency reserve realignments.