You have no idea how currency work, do you??
Fiat Currency need to peg on something, otherwise it would worth less than the paper that was printed on that currency, so there have to be a tie in to a certain value. In the currency world, value is defined as either denomination (ie, each bank note) and line of credit (ie the value that only exist on paper, or database)
That's what the term "Printing Money" is from, you don't actually print money out of a printing press, you extended more Line of Credit from the Federal bank to local commercial bank, they then. loan it out to business or people like you and me for whatever reason like buying a car or house, and when the money being paid back (ie, we pay the loan back to the bank and the commercial bank paid their LoC back to federal bank) the fed can either issue another loan or withhold it to take that LoC out of circulation.
Which mean this comes into the picture
View attachment 922749
This is the World Reserve Currency status in 2019, it hasn't changed much in 2021 (no 2022 data available as far as I can find but should be almost the same as 2021) when in 2021 USD dropped from 61.82 to 59.08% so you do the maths.
How this come into play? Those are money (or currency) those country have in each other Central Bank, so the world central bank (like Canadian Central bank, China central bank) which mean the world central bank is holding around 6 trillion USD now, and around 2 trillions worth of Euro and so on. Now that's only a corner of a country currency circulation, because in the US, you are looking at around 10 tillion line of Credit and 2 Trillion Cash, so half of those went to Foreign Central Bank.
Now enough explaining, and onto your question, Can a collective effort of different countries can push the US off the world currency dominance? Technically, it's possible. In reality, a lot of those collective country would have gone bust doing it. Technically, there are 3 ways you can dethrone USD as world dominance currency, you don't need to replace the whole 59%, you just need to drop USD to 49.9 and the rest of the field 50,1) They are
1.) US Endorse a Global Trade Currency
2.) Euro Join hand with fellow countries to dethrone USD
3.) The world do it without Euro
Now number 1 mean US committing Economic Suicide. Well.....That's not gonna happen.
Number 2 would mean Euro would throw their currency base into the mix, which mean the entire collective would need to expanded their currency base for 8 or 9 % or whatever the percentage US dollar over 50 now. This is going to bring a lot of economic collaspe in the world, because that represents a portion of the line of line of credit extension that would have seen more than 8 or 9% national increase, that's 10+ point of inflation. We are all crying now for 3-5% inflation after the Russian War and coming out of COVID. Imagine you are going to have 10+% and that is not going to come down until you drop your ambition for World Currency Reserve.
What's more? This would most likely put Euro still in charge of world reserve, and that is if not US Commit Economic Suicide and take the world down with it with 49.9% value by choice or by action, US can still collapse the world currency with its 49.9% hold .
Number 3 could happened, but would be in a REALLY
long term, or another world war that broke out and destroyed US and Euro financial and civil structure to a point they cannot sustain an order, then a third nation or a collective of third nation. Or China or some countries has to corrode the % bit by bit by increasing their currency output. At this point, I can't see how China doing it, or even Euro for that matter. China Forex is said to be having around 3.12 trillion dollar value on it, around 1 trillion of those are USD (So China is holding 1/6 of those USD in world circulation). Which mean they would first have to buy back that 1 trillion, and then issue with 1 trillion dollar worth of RMB to cover that and then proceed to buy other debt from other. That's just not going to happen overnight, and judging by the effort now, it will take the Chinese Decade to completely replace USD in their reserve, if that is even possible to begin with, the second part would then be multiple decade project, again, if that is even possible, because that would depends on the world to buy Yuan.......
IF US Dollar is out of world dominance, then yes, this would bring in a hyperinflation and collaspe of US Living standard,
But still if that happen, you think US would not bring down the world with it? So let's say, even if US is bringing down to 49.9% of world currency reserve, what do you think would happen if the Fed said they are not going to continue with Foreign Exchange or simply withdraw from the world foreign exchange?? The world would have to buy back that 49.9% asset US have in the world central bank, that alone is NOT an easy task. I mean US is doomed anyway in this case, why not take the world with it??