Gold-hammer: Brics challenges the dollar rule!

Gold-hammer: Brics challenges the dollar rule!

The BRICS countries have decided to use gold as the basis for their new payment system. This is a direct challenge for the dominance of the US dollar. In recent years, the economic block has continuously increased its gold reserves, which makes it clear that one increasingly turns away from the US dollar.

Last year, the BRICS block has increasingly pursued a consistent deedollization strategy. The aim is to reduce international dependence on the West. At the same time, the block strives for a larger role in global economy and could soon introduce a new currency that can compete with the dominance of the US dollar.

Brics relies on gold in a new payment system

At his next summit in 2024, the BRICS block plans to present a groundbreaking new payment system. This system is based on blockchain technology. At the same time, there are discussions about the introduction of an international trade currency.

Regardless of this, the BRICS block has selected gold as a key component for the new payment system. A report shows that gold will make up 40% of the common accounting unit, while the remaining 60% will consist of different BRICS currencies.

Audrey Mikhailishin, head of the Task Force for Financial Services of the BRICS Business Council, recently explained the importance of this integration. She called gold a "practical and universal instrument" and emphasized how important the metal could be for the development of the project, as Watcher.guru reports .

"If you have an invoice unit that can be converted into any national currency, it is more practical to keep it because it is a liquid instrument," said Mikhailishin. This flexibility will be decisive if the block wants to increase the competition to the US dollar.

Since the Bretton Woods Agreement in 1944, the dollar dominated the financial world, ultimately replacing gold. There is no national currency that could challenge the cachet of the dollar. However, there is a growing number of countries worldwide that use gold as a basis and thus increase the competition.

Interestingly, Gold achieved several all-time highs in 2024, which is contrary to the falling relevance of the US dollar. According to the “Dollar Dominance Meter” of the Atlantic Council, the Greenback has lost 14% of its share in the global reserves, a decline that has been going on since 2002.

The introduction of a BRICS currency could further accelerate this process and bring a new dynamic into the global currency structure.

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