Throughout my life, the U.S. dollar has consistently maintained its status as the world’s leading currency. Despite numerous global efforts to reduce its influence on trade and the international market, the dollar continues to stand strong and unmatched.
This persistence sparked my curiosity—what exactly makes the U.S. dollar so unique? The answer lies in its classification as a fiat currency. This means that the dollar isn’t backed by a physical commodity like gold. Instead, its value is derived from the trust and confidence placed in the U.S. government and its economy. As a result, the total amount of U.S. dollars in circulation no longer corresponds to the amount of gold held in the U.S. Treasury.
1. A Brief History on Currency
To give some context, in ancient times, people traded using tangible commodities like gold, silver, and copper. These items held intrinsic value and were accepted as a medium of exchange. However, as trade expanded, transporting heavy metals became increasingly inconvenient and impractical.
To solve this, banks began allowing individuals to deposit their precious metals and, in return, issued signed certificates. These certificates served as proof that the holder owned a specific amount of gold stored safely in the bank’s vaults.
Over time, these certificates evolved into what we now recognize as paper currency. This system, known as the gold standard, became the global norm. Under this standard, every note in circulation was backed by a corresponding value of gold held by the issuing bank, ensuring trust and stability in the currency’s worth.
It wasn’t until 1933 that the United States officially abandoned the gold standard. This shift allowed the U.S. Treasury to print paper money without needing an equivalent amount of gold to back it. As a result, the government could inject more currency into the economy to stimulate growth or respond to financial crises.
The implication is this: the total amount of U.S. dollars in circulation no longer corresponds to the value of any physical commodity held in reserve. The dollar became a fiat currency—its value now depends on trust in the government and the stability of the economy, rather than being backed by gold or silver
Despite this, the US dollar continues to be robust and dominant. According to the Bank for International Settlements, the US dollar is involved in 90% of global foreign exchange transactions. This raises an intriguing question: What makes this currency so exceptional that it has remained unchallenged for years and consistently stands at the forefront despite not being backed up by commodities?
2. What Keeps The US Dollar At The Forefront?
History records that in July 1955, President Dwight Eisenhower signed a bill into law that required an inscription of the words “In God We Trust” on all US paper and coin currency. This phrase was declared a national motto.
IN GOD WE TRUST
The US dollar is unbacked by any physical commodities, I hold the belief that the US dollar remains at the forefront, because it is backed by the Creator of all commodities – God Almighty.
Isaiah 40:31 reads,
“But those who trust in the LORD will find new strength. They will soar high on wings like eagles. They will run and not grow weary. They will walk and not faint.”
Since this inscription, the US dollar has remained undefeated. Despite experiencing recessions, wars, pandemics, and numerous global tragedies, the US dollar continues to rise.
Throughout the terms of various U.S. presidents, the value of the dollar has never plummeted. This resilience stems from a profound faith and trust in God that underpins the currency.
Prophet Jeremiah wrote:
“But blessed are those who trust in the Lord and have made the Lord their hope and confidence. They are like trees planted along a riverbank, with roots that reach deep into the water. Such trees are not bothered by the heat or worried by long months of drought. Their leaves stay green, and they never stop producing fruit. (Jeremiah 17:7-9).
Dear reader,
If God can remain faithful to His word over something as fleeting as paper currency, imagine what He would do for you—the one created in His very own image.
Surely, you will rise above and never fall beneath. You will be like a tree planted by the riverbank, bearing fruit in every season.
Your strength, your fruitfulness, and your longevity will not be shaken by external circumstances, because your trust is rooted in the Almighty.
3. The US Dollar Is Built On Biblical Principles
When Eisenhower passed the bill into law, House of Representative Charles E. Bennett of Florida, stated,
“Nothing can be more certain than that our country was founded in a spiritual atmosphere and with a firm trust in God. While the sentiment of trust in God is universal and timeless, these particular four words ‘In God We Trust’ are indigenous to our country.”
Jesus emphasized the importance of building on a firm foundation in Matthew 7:24–25, saying that a person who hears His words and puts them into practice is like a wise man who builds his house on solid rock.
Though the rain pours, the floodwaters rise, and the winds beat against that house, it does not collapse, because it is built on bedrock.
In the same way, the U.S. dollar—though it has weathered recessions, wars, and global crises—has remained standing because it was founded on the solid rock of trust in God.
Pandemics, natural disasters, riots, wars and more have come and gone, yet in all these events, the US dollar kept its dominance.
Moreover, in the past decade, there has been a surge in crypto currencies as a payment alternatives but their reach hasn’t come close to toppling the US dollar.
Additionally, various nations have come together in attempts to undermine the US dollar. However, all their efforts have been futile, simply because, “IN GOD WE TRUST.”
We can apply this principle in our personal lives. Psalm 127:1 reads, “Unless the Lord builds a house, they that build it labor in vain.”
This signifies that our lives and all the things we do should be founded in God. He assures the stability of our lives when adversity and hardships confront us. Therefore, being founded on the Rock gives us the assurance that we suffer no collapse when life’s challenges come about.
4. God Is Being Glorified Through The US Dollar
I believe that the US dollar still prevails as a testament to the power of trusting in the LORD. Even in areas where Christianity may not be the dominant faith, the US dollar currency will proclaim, “In God We Trust”.
Matthew 6:24 reads: “No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.“
Jesus was demonstrating the ability of money to become an idol. People, businesses, institutions, government entities and more are hard at work trying to amass wealth. Everything is done with a profit in mind.
Now here is an interesting paradox, the world values the US dollar whose foundation is in trusting God. God, in His wisdom, has made the very thing that people try to amass all their lives to be in-scripted with His name. Demonstrating that God’s name will be glorified in all things.
Anything that bears the name of God will always be blessed. Like the US dollar, as believers we too have the name of God scripted in our lives. We are called the sons of God (1 John 3:1).
I personally admire the NASB translation of Ephesians 3:15-16, where Paul writes that believers in both heaven and derive their name from God.
For this reason I bend my knees before the Father, from whom every family in heaven and on earth derives its name.
5. Final Remarks
- The US dollar owes its longevity and dominance not by the backing of physical commodities but by the backing of God, for blessed is the nation whose God is the LORD (Psalm 33:12).
- Its success serves as a testament to the power of trusting in God. It continues to rise like an eagle, staying high above the storms that impact the global economy. Just as an eagle soars effortlessly at great heights without flapping its wings, when we place our trust in the Lord, we too can stay elevated without putting in personal effort to remain above challenges.
- God is being glorified with every FX transaction and every trade, because at the back of each transaction are the words “IN GOD WE TRUST”. The global economies continued confidence in the US dollar is tantamount to trusting in God, knowingly or unknowingly, because God is the one backing the currency.
- Dear reader, whenever you hold US dollars, take a moment to notice the bold inscription: “IN GOD WE TRUST.” While the paper itself may not weigh much, its true value lies in what it can accomplish for you. Similarly, we may feel weak and fragile as individuals, but our worth in the Kingdom of God comes from being built on the foundation and backing of the Rock.
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