19 July 2023
A significant financial development may be on the horizon as the BRICS nations—Brazil, Russia, India, China, and South Africa—are reportedly considering the introduction of a joint currency backed by gold. This proposal, which aims to “de-dollarize” the global economy, will be discussed during the BRICS summit in Johannesburg from August 22 to 24.
The move to establish a gold-backed currency comes as a response to concerns over the potential weaponization of the US dollar through economic sanctions. With over 40 countries, including Algeria, Argentina, Egypt, Mexico, Nigeria, Saudi Arabia, and the United Arab Emirates, expressing interest in joining BRICS, the initiative is gaining momentum.
While some experts believe the creation of a common BRICS currency similar to the euro is unlikely to happen soon, the possibility of a commodity-backed currency has sparked intense discussions on social media. Authors like Robert Kiyosaki, known for “Rich Dad Poor Dad,” have highlighted the potential impact of a gold-backed crypto and urged the purchase of gold and silver.
Critics of fiat money and proponents of the gold standard, such as Canadian politician Maxime Bernier, view this development as an opportunity to address economic and political issues associated with the current monetary system. The BRICS nations present a credible alternative to Western hegemony, challenging the dominance of the US dollar.
However, US Treasury Secretary Janet Yellen maintains that the dollar remains the dominant reserve asset, and she sees limited alternatives for countries to use as a reserve currency. The US and Western media are cautious about speculating on the potential decline of the dollar’s global standing, emphasizing its current dominant position in international transactions.
As the BRICS summit approaches, the discussions surrounding the introduction of a gold-backed currency highlight the growing desire among nations to reduce reliance on the US dollar and explore alternative financial systems that provide greater stability and independence.