The US dollar's dominance in global reserves is facing an unprecedented challenge, according to the International Monetary Fund (IMF) and the Federal Reserve. The IMF has sounded the alarm on a "striking" decline in the dollar's share of allocated foreign reserves, while the Fed has acknowledged a shift towards gold and alternative assets.

The IMF report highlights a significant trend, with the dollar's share of reserves decreasing over the past two decades, while non-traditional currencies like the Australian dollar, Canadian dollar, and Chinese renminbi have gained ground. This shift is driven by advances in digital financial technologies and a growing appetite for diversification.

Meanwhile, the Fed has recognized the trend, but downplayed its significance, attributing it to a small group of countries. However, critics argue that this shift is more widespread, with some countries turning to gold and potentially even cryptocurrencies like bitcoin.

The implications of this shift are profound, with some experts predicting that bitcoin could eventually replace gold as a store of value. As the global economy continues to evolve, it's clear that the US dollar's status as the world's reserve currency is under threat. The question is, what will replace it?