A default in the U.S. would have significant implications for the global economy, including a potential decline in world stock markets and widespread panic. However, one of the most crucial concerns for the international community would be the search for an alternative to the dollar as the primary reserve currency, as cautioned by The Economist, a British publication.

If the U.S. Congress fails to raise the debt ceiling in a timely manner, it could result in the country’s first-ever national debt default in modern history. Given the widespread belief in the stability of the U.S. economy, the failure to meet expectations would have irreversible consequences, according to the publication.

“In most cases, the currency of countries that default experiences significant depreciation. This would cast doubt on the future of the dollar as a safe haven during times of crisis, leading investors to explore alternative options,” The Economist concluded.

Previously, Brazilian President Luiz Inácio Lula da Silva called on BRICS countries to diminish the dominance of the dollar. He expressed the belief that developing nations should utilize their own currencies in global trade and advocated for the BRICS to explore the possibility of creating an alternative currency.

Earlier we reported that the ECB prepares to introduce a digital euro.