The BRICS nations are working on the development of a new form of currency. The nations involved in the bloc will be pitching ideas related to the objective during its upcoming summit in South Africa. This means that the doors are currently open for a single BRICS currency to emerge.
The State Duma’s Deputy Chairman, Alexander Babakov went on to recently reveal that alongside gold, this currency might also be backed by other commodities like rare-earth elements or soil. He asserted that the bloc is looking to provide the circulation of digital or any other form of a fundamentally new currency in the “nearest future.”
Also Read: BRICS Are Developing a New Currency: State Duma Deputy Chair
The development of a new currency would slash the countries’ dependence on the U.S. dollar. In fact, for the BRICS nations, the ”transition to settlements in national currencies” is the first step of the broader objective.
Well, the U.S. dollar has been the apex currency for decades and the whole economic landscape is accustomed to the same. Of late, several nations have announced roadmaps to steer away from it. The emergence of a novel currency would obviously make things complicated and challenging for the common man, and regulators also for that matter. But for now, it seems like the dollar continues to maintain its dominance in the market.
Will the masses gravitate away from the U.S. dollar?
Establishing a new currency as a reliable alternative to the U.S. dollar can be difficult and wouldn’t happen overnight. There would be currency instability and economic uncertainty initially, but if the stars align and if things work out, then the global economy could actually step into its transition phase. In fact, several believe that the BRICS’ latest call to challenge the dollar could help create a globally fairer, multi-currency global system.
In a recent interview, Rich Dad Poor Dad author Robert Kiyosaki said that U.S. President Joe Biden is “crushing the middle class.” The country’s political and economic policies have fueled the de-dollarization fuel, according to the author. He further added that about 70% of the world’s population will gravitate towards using a gold-backed Chinese yuan as their main currency via the BRICS alliance. This, according to Kiyosaki, will make the U.S. dollar “toast.”
In fact, former U.S. President Donald Trump also recently said that China’s yuan will likely end up displacing the U.S. dollar as the number one currency in the world. He additionally said that the crashing dollar will soon no longer be the world standard.
Also Read: China’s Yuan Will Likely Displace U.S. Dollar as the Number One Currency: Trump