BRICS: Expert Says Currency Backed by Gold May Be Key to Ditching the US Dollar
According to one expert, a BRICS currency that is backed by gold could be a key to eventually ditching the US dollar. Although a native currency has taken a back seat for the alliance, the massive surge in the value of the metal could have it playing a crucial role in global de-dollarization.
In a recent interview, Arcadia Economics Chris Marcus discussed the important role that gold can play. Moreover, he discussed whether or not the bloc could be set to introduce a native currency at the upcoming 2024 BRICS Summit. The event is expected to host a multitude of monumental announcements. Specifically, they could target the continued challenge of the greenback’s global dominance.
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BRICS Gold-Backed Currency Incoming? One Expert Says It Could Be a Game Changer
2024 is set to be a massive year for the BRICS bloc. The upcoming summit should be just the beginning. There have been rumblings that the event will see the unveiling of the BRICS Pay system. The blockchain-based payment platform would establish a new standard for trade settlement in the global south.
However, there are many who are holding out hope for the alliance to introduce its own native currency. Specifically, this trade currency has been in the works for some time. According to one expert, a gold-backed BRICS currency could be a key player in ending the US dollar.
In a recent interview, Chris Marcus noted the growing impact of gold. The metal just recently broke through to yet another all-time high this year. For Marcus, a key part of that has been Central Bank purchasing. Driven by the BRICS bloc, the acquisition strategy of global banks has surged since 2022.
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Yet, that represents a far more important point of the global economic world. For Marcus is the display of a “weakening faith in traditional finance systems.” That sentiment would hit overdrive with a BRICS currency.
Marcus discussed what he called, “the Unit.” This is a BRICS reserve currency backed by gold. Its presence would present a massive shift in the overall global finance structure, as it would present competition to the US dollar on a global scale.
Its adoption would obviously be the catalyst for its success. Yet, it would have an undeniable effect on the metal. There do appear to be some barriers to entry for nations looking to trade on the BRICS Pay platform. Yet, a gold asset doesn’t require blockchain infrastructure. It only relies on one of the most basic strategic reserve assets; gold.