Saudi Arabia, the US Dollar, and Project mBridge

Introduction

• Speaker: Mark Moss
• Topic: Saudi Arabia leaving the Petro dollar and adopting Project mBridge by BIS
• Objective: To explain what Project mBridge is, why Saudi Arabia is adopting it, and its implications

Background

• Mark Moss: Financial educator & investor with over 20 years experience, partner in Bitcoin-focused hedge fund

Saudi Arabia and the Petro Dollar

• Common Narrative: Saudi Arabia ditching or not renewing the Petro dollar agreement
• Actual Agreement: Agreement from 1974 on mutual cooperation between the USA and Saudi Arabia, focused on financial and military assistance
• Current Status: The agreement wasn't exactly about pricing oil exclusively in dollars; it was broader
• Misconceptions: Headlines vary, and there’s truth in both perspectives

US Dollar's Global Presence

• Trend: Decrease in US Dollar's percentage in global trade from 80% in 2000 to below 60% now
• Implication: A gradual trend downward, not an immediate crash
• Charts: Show continuous decline and rise in usage of other currencies like the Chinese Yuan

Shift to Project mBridge

• New Agreement: Saudi Arabia is joining the BIS and China-led Central Bank Digital Currency (CBDC) project
• BIS: Bank of International Settlements is the 'central bank for central banks'
• Participants: Includes 15 use cases, 22 major participants (e.g., Goldman Sachs, HSBC, major state-owned Chinese banks)

Leapfrogging Technology

• Old System: US dollars, SWIFT system
• New System: mBridge allows countries to bypass SWIFT, similar to how Africa leapfrogged wired to wireless internet
• Implications: Changes the dynamics of international trade and financial transactions

What is Project mBridge?

• Description: A multi-CBDC platform by BIS to connect economies
• Features: Programmable money, improved cross-border transactions
• Participants: Hong Kong, Thailand, China, UAE, and now Saudi Arabia
• Functionality: Central banks use mBridge as a hub for currency exchange

Concerns and Implications

• Centralization Risk: Potential for centralizing the banking system, leading to manipulation
• Inflation: As US Dollar dominance decreases, inflation in the US might increase
• Economic Impact: Quality of life may decrease due to increased cost of living

Conclusion

• Current Events: We're witnessing a historic transformation of the international monetary system
• Future Trends: Dollar's decline will be gradual but persistent
• Investment Implications: Need to grow wealth by at least 12% to stay ahead of inflation and currency debasement
• Call to Action: Stay informed, assess the impact on your financial plans