BRICS: A New World Currency is Shaping, and it Isn’t Bitcoin
Gold is reaching unprecedented heights as BRICS nations continue to accumulate against the U.S. dollar. The rise of gold is expected to continue as long as countries keep printing money and facing significant deficits.
Central banks are also actively buying and offloading U.S. bonds, wary of the potential for sanctions a la Russia in the future.
The economic group BRICS is pivotal in these dynamics. It stands for Brazil, Russia, India, China, and South Africa—an alliance that has been forming for the past 14 years to contest U.S. dominance with a new currency: BRICS.
BRICS: The New World Currency
BRICS
In 2014, after Russia’s expulsion from the G8 due to its aggression in Crimea, the group shifted from G8 to G7. Russia’s response was notably dismissive. Putin famously remarked, “Bon appetite.”
This was indicative of his foresight regarding a significant transformation—the emergence of a new world order, led by China, India, and Brazil.
Individually, these nations might appear weaker compared to the U.S., but together, they constitute 40% of the global population and are projected to contribute to 50% of the global GDP by 2030, according to the IMF.
Recently, BRICS President Marcos Prado Troyjo stated that these nations have established a mechanism for mutual transactions in rubles and rupees, negating the need for dollar use in their exchanges. Currently, China is also developing a comparable system using rubles and yuan.
BRICS: The Consequences of American Actions
Over a decade ago, BRICS began taking decisive steps. A pivotal moment was the financial crisis of 2008, caused by the negligence and greed of U.S. banks that inflicted pain not just domestically but worldwide.
The U.S. dollar has long been the global settlement currency, used by nations for international trades. However, the dire consequences of the 2008 crisis created waves that led many countries to reassess this reliance on the dollar.
The Future of the U.S. Dollar
Currently, alongside Saudi Arabia, numerous countries have shown interest in joining BRICS. They are contemplating switching to a gold-backed system that could establish a new world reserve currency, emphasizing the need to monitor developments closely.
EXPLORE: Dogecoin Decoupling From Bitcoin Price?
Disclaimer
Disclaimer: This information is for educational purposes only and does not constitute investment advice. All capital is at risk.
