The US Dollar has been the center of global power and trade for decades. There has been little competition for it, pitting the currency in the middle of global affairs and commerce. However, over the last few years, threats have grown against USD, and distrust/concern over the currency is growing parallel. Now, a new currency is coming to town, BRICS Currency and it may have the potential to overshadow the dominant US Dollar’s power through de-dollarization.
The BRICS bloc has firmly embraced a lessening reliance on the West in recent months. Indeed, the collective has established trade with national currencies while diminishing the presence of the Greenback on an international scale. Yet, the upcoming gathering of the bloc’s leaders could push those endeavors into another gear.
There are hopes among the BRICS bloc and supporting nations that de-dollarization would put an end to global reliance on the US Dollar. In addition to that, BRICS weakening the US Dollar and its power may also weaken the US, and the West as a whole.
Also Read: BRICS to Make Up One-Third of the Global Economy by 2028
BRICS to Take Global Power from US With New Currency?
The BRICS nations now count for over a third of the world’s population. With new members potentially incoming, that number has the potential to creep toward 50%. A world without US dollar dominance hasn’t been seen in decades, due to how the West has made USD a well-oiled machine in trade.
As the US Dollar loses value due to growing regulations, inflation, and the rise of BRICS, a new global currency can start making its push to the top. The Chinese Yuan is already making a push in South America. Global Reserve banks are also stockpiling Gold as the gold-backed BRICS currency may be under development.
With all these factors, a world without US dominance may not be in the immediate future. However, some nations can envision it, and it appears to be a popular idea. This can prove dangerous not just to the US Dollar, but to the US as a whole in terms of a global power structure. And BRICS may be preparing to take over the throne with time.