Eagle Forge
@EFbullion
“Details about the BRICS single currency will be revealed at the October summit in Kazan, marking the end of the dollar’s 80-year hegemony in the world”
Slowly but surely: the BRICS countries are getting closer to creating an alternative to the dollar
In October, at the summit in Kazan, details will be revealed about the unified BRICS currency, which will put an end to the 80-year-old hegemony of the dollar in the world.
BAKU, Jul 4 — Sputnik. Possible scenarios of withdrawal from the US dollar have been discussed for more than ten years. But only now the distinct contours of the implementation of these plans began to emerge. Their initiators are the BRICS countries, which have actually turned into an alternative world center of power capable of resisting the western dictate.
For the final recognition of this status, BRICS lacks only two components: a currency system free from US influence and a document ensuring the military-political security of the participating countries. And if the second question at the present stage is not yet so relevant, then the first about creating an alternative currency can be resolved in the near future.
Creating a single BRICS currency is in the decisive phase
BRICS countries are implementing a three-stage plan to create an alternative international currency. According to preliminary information, it is planned to adopt a gold standard, develop a single payment system with the introduction of new technologies, as well as ensure the distribution of digital currencies of central banks. The implementation of these plans will create a new reality in the global economy, where since the Bretton Woods Conference, the American currency reigns supreme.
The gold stock of BRICS participants is constantly increasing. And this despite the fact that it already amounts to significant 6.3 thousand tons. The BRICS countries have been the world’s largest buyers of gold since 2022, which indirectly confirms the main focus in creating a new world currency.
The successful circulation of the new currency, along with the technical component, is designed to ensure the economic and demographic potential of the participating countries. Currently, the economic scale of BRICS is $ 29.5 trillion, that is, approximately 30% of the world gross domestic product, and the population has reached 3.5 billion people, which provides a serious demographic base for the new currency.
Independent payment system and digital currency will ensure independence from the West
At the same time, the creation of independent payment systems and the strengthening of digital currencies is designed to ensure independence from similar Western systems. Within the framework of BRICS, it is planned to create an independent settlement payment system based on modern technologies. In this regard, the Russian Ministry of Finance reports that work is underway on a platform that will allow for money transfers between the BRICS countries and mitigate the effects of Western restrictions.
In the field of digital currency adoption, the PRC took the lead. The Central Bank of China is showing the fastest growth in this area. While its circulation is limited to the territory of the PRC, but has already reached impressive momentum. Beijing is trying to expand the central bank’s cross-border digital currency project called Mbridge, covering Hong Kong, Thailand, the UAE, as well as 25 observer countries.
The Russian government is working in the same direction, which launched the pilot digital ruble project in August 2023. Currently, the digital currency is accepted in 11 cities of the Russian Federation, but intensive work is underway to expand these opportunities.
The growth of the share of national currencies in mutual settlements
In parallel, Russia increased the share of the use of national currencies in mutual settlements with friendly countries to 75%. Cooperation in this form created the need to create a structure similar to SWIFT, which is designed to ensure transactions with national currencies. The basic system of this structure, integrated with digital versions of the currencies of the BRICS member countries, will operate on the basis of blockchain technologies.
Experts note that the rejection of the dollar and the introduction of national currencies – is an important initial step, after which the emergence of a completely new monetary unit can follow.
In such a situation, it is clear that the Bretton Woods system, which has dominated the global economy for 80 years, is coming to an end. With new relationships, the undivided dominance of one financial system will be impossible, and BRICS will really turn into one of the centers of international relations.
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Lee Bollard
@The_Jolly_Co
Ah. It will first have to be used more than the dollar to mark the end of the dollars hegemony. Important distinction
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Eagle Forge
@EFbullion
No it won’t. There is a difference between hegemony (exclusive control), and dominance (majority control). USD/UST hegemony is already gone, never to return, and in 20-25 years it will probobly be about as significant as the Pound or Ruble.
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Daryl Staton
@DarylStaton
I don’t think it will be 1 currency. They will still have their own currencies, but they will use some kind of a bridging mechanism.
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Eagle Forge
@EFbullion
You are correct. The bridging mechanism is mBridge.
