The Disappearing Trust in Money

The story of money in America has always been one of resilience. The dollar weathered wars, recessions, and crises, retaining its place as the world’s financial anchor. But today, a quieter shift is underway. Mounting deficits, global diversification away from the dollar, and the vanishing presence of community banks have stirred a new unease. The question in 2025 is no longer whether the system can survive shocks—but whether Americans can still trust it the way they once did.

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The signs are unmistakable: physical bank branches across the U.S. are shuttering at an accelerating pace. Over 320 bank branches closed in just the first quarter of 2025, including branches of large names such as Wells Fargo, Bank of America, Flagstar, and TD Bank. This trend reflects a profound shift in consumer habits, as more than 40 million Americans now primarily rely on mobile-only banking platforms. With branch counts dropping below 65,000 nationwide, regions like California, Texas, and New York lead in closures. Community banks, often seen as the pillars of local economies, are not immune; nearly 29% of closures are from smaller banks under $10 billion in assets, often in lower-income districts. The Federal Reserve’s 2025 Banking Access Report even describes a rising “banking desert” issue in the Midwest, where access to in-person banking services is dwindling.

Yet, the wave of closures and digitization does not come without stress among banking customers. While the Federal Reserve’s 2025 stress tests show resilience among regional banks—with all 22 tested passing and some like M&T Bank and Wells Fargo well-positioned financially—worries linger about transparency and preparedness for future shocks. Depositor behavior revealed some deposit flight from regional banks early in the year, intensified by the broader economic uncertainty.

For the conservative saver with a lifetime of experience relying on stable, local banks, this marks a wrenching transition. Branch closures may signal efficiency gains and modern convenience, but they also strip away visible pillars of financial security. With banking relationships becoming more virtual and ephemeral, the old assurance of trust in familiar institutions frays.

What this means for your savings: Physical bank closures are more than just inconvenience—they reflect an industry in flux. Maintaining financial security means adapting to digital tools carefully while monitoring your banks’ stability.

Digital Money and Central Bank Digital Currencies (CBDCs)

As physical banking recedes, digital money is stepping forward as a dominant force in 2025. Central Bank Digital Currencies (CBDCs) exemplify this transformation. Globally, 114 countries have explored CBDCs, with 81 central banks actively piloting or developing digital versions of their sovereign currency. The United States remains cautious but is watching closely. Unlike countries aggressively pushing retail CBDCs, the U.S. federal government notably halted work on a retail CBDC in 2025. Still, pilot programs and wholesale CBDCs are under study, and the digital financial landscape is evolving rapidly.

CBDCs promise greater efficiency in payments, lower transaction costs, and financial inclusion, particularly in the digital era. They could potentially replace physical cash, facilitating faster cross-border payments and giving central banks more direct control over monetary flows.

But these innovations carry risks that resonate uneasily with many Americans, especially those who prize privacy and financial sovereignty. A state-issued digital currency could mean unprecedented surveillance and direct governmental control over transactions. It raises concerns about the erosion of privacy and increases the potential for financial exclusion of those uncomfortable or unable to participate fully in a digitized economy.

The push for digital money continues apace internationally despite U.S. caution. Investors, savers, and retirees must weigh the benefits of convenience against the risks of ceding control over one’s wealth and personal financial data.

Economic sovereignty efforts outside the West continue to reshape the global monetary order. In 2025, the BRICS bloc (Brazil, Russia, India, China, South Africa) has intensified its push for alternatives to the US dollar dominance. Central banks in BRICS countries purchased 166 tonnes of gold in the second quarter alone—a 41% increase from typical volumes—highlighting gold’s enduring role as a geopolitical buffer and store of value amid growing currency uncertainty.

BRICS members now collectively hold approximately 20% of the world’s official gold reserves, with Russia and China dominating their holdings. Alongside gold accumulation, BRICS nations have been increasing trade in local currencies and developing “BRICS Pay,” a proposed digital cross-border payment system meant to bypass Western-controlled financial rails. Additionally, the expansion of BRICS to include Indonesia and other emerging economies broadens the economic weight of this coalition.

Meanwhile, the prestige of the U.S. dollar as the primary global reserve currency subtly erodes. Data from the International Monetary Fund shows the dollar's share of allocated global currency reserves dipping to around 57.7% in the first quarter of 2025, down steadily from roughly 58.4% a year prior. In contrast, the euro’s reserve share gained ground, while other currencies like the Chinese renminbi and Japanese yen also made cautious gains.

This does not signify an immediate crisis but reflects a slow but steady diversification of reserves by countries hedging against dollar vulnerabilities—particularly with ongoing U.S. fiscal deficits and political uncertainty shaping investor sentiment worldwide.

For older American investors, the shifting monetary landscape is fueling a pronounced change in psychology. The years of rapid growth in equities and risk assets, although not forgotten, are yielding to a more defensive posture. Natixis Investment Managers’ 2025 Global Retirement Index found Americans increasingly worried about inflation’s persistence, rising public debt, and diminishing government benefits.

In online forums and social media, commentary from 2025 reflects these concerns. Paraphrased sentiments from Twitter/X indicate a growing skepticism: “Stocks look expensive, inflation is relentless, and social security feels shaky. Time to focus on what really protects my savings.” Meanwhile, YouTube channels aimed at retirees pivot toward content on capital preservation, safe income streams, and inflation hedges rather than chasing high-growth speculative bets.

Household debt reached a record $18.39 trillion in Q2 2025, largely driven by rising mortgage and credit card balances, increasing anxiety about personal financial stability. Older Americans are increasingly reallocating portfolios toward gold, inflation-protected securities, and dividend-paying equities — a clear preference for safety and reliable income.

The erosion of trust in traditional money and financial institutions has translated into more cautious investment behavior. While many still participate in markets, the emphasis favors protection over growth.

Key Shifts in America’s Financial Landscape:

The unfolding story of trust in money will deepen in 2026. Watch for several key signals:

Investors who remain attentive to these developments and flexible in their planning will be best positioned to navigate the world where trust in traditional money wavers but prudent monetary management and asset allocation remain essential.

The gradual disappearance of trust in money is a profound challenge for American savers approaching retirement, but it also offers an opportunity to rethink how one protects and grows wealth in uncertain times. Embracing clarity, diversification, and vigilance is the way forward.

In a world where money’s foundation feels less certain, staying informed and proactive is the best safeguard for preserving your financial future.

Deniss Slinkins,
Global Financial Journal