BRICS Set to Use Gold to Power New Payment System, Challenging US Dollar
The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, is reportedly turning to gold to fuel its new payment system, a move poised to shake up the US dollar’s long-standing dominance. Over recent years, the bloc has significantly boosted its gold reserves, preparing for a shift away from the greenback. This is no small potatoes, folks—it marks a key step towards their ongoing de-dollarization strategy. The head of the BRICS Business Council’s Financial Services task force, Audrey Mikhailishin, dubbed gold a „convenient and universal instrument,“ crucial for the initiative’s progress. More insights can be found in the article from watcher.guru.
The bloc is gearing up for a major reveal at its 2024 summit, where it’s expected to launch a blockchain-based payment system, potentially alongside a new trade currency. This could be a game-changer, with gold making up 40% of the system’s common unit of account, the remaining 60% being various BRICS currencies. Mikhailishin emphasized the liquidity benefits of a gold-based unit, making transactions more straightforward and competitive with the US dollar. Interesting to note, gold has hit numerous all-time highs in 2024, while the dollar’s global reserve share has dwindled by 14% since 2002, according to the Atlantic Council’s Dollar Dominance Meter. This new BRICS currency might just accelerate that downward trend. More details on this significant development are available on watcher.guru.
