HomeNewsBRICS Gold-Backed Currency Dream in Peril as China and India Clash -...

BRICS Gold-Backed Currency Dream in Peril as China and India Clash – Bitcoin (BTC) as an Alternative?

- Advertisement -
  • The weakening bond between China and India threatens the future of a gold-backed BRICS currency.
  • The absence of China’s President Xi Jinping at the G20 Summit signals deeper geopolitical issues.

Leaders from the globe’s most affluent and influential nations are gearing up to participate in the G20 Summit in New Delhi, slated to commence on September 9, as reported by Reuters. This prominent event will see India playing host for the first time to such a powerful ensemble of global leaders. The capital city has been meticulously prepped, with public buildings newly painted and traffic intersections adorned with decorative flowers.

Gold-backed BRICS: Diplomatic Tensions Cloud the Vision

The ambitious goal of the BRICS (Brazil, Russia, India, China, South Africa) nations to launch a gold-backed currency, aiming to challenge the U.S. dollar’s dominance, seems to be on uncertain grounds. The rising strains between China and India, two pivotal players in this project, threaten its fruition. As the world’s leaders prepare for the G20 summit, China’s surprising choice to have Premier Li Qiang represent them in lieu of President Xi Jinping – who has been a G20 regular since his 2013 leadership commencement – accentuates the deepening divisions between the two nations.

Such discord was evident in the recent BRICS conference in Johannesburg. While Xi and Modi tried to portray unity, subsequent discussions about their contentious border region led to significant diplomatic discord.

Economic Dynamics and Future Outlook

With Russia poised to take the BRICS helm next year, there’s a palpable drive to further the de-dollarization agenda and usher in a new global trade financial structure. However, the realization of a gold-backed BRICS currency is heavily dependent on the full cooperation of China and India. China, boasting an $18.3 billion economy, ranks just behind the U.S., far surpassing the collective BRICS economies, barring India. Meanwhile, India’s $3.5 billion economy is notably ahead of Russia’s $2.1 billion. While Russia contends with economic headwinds due to sanctions and China grapples with decelerated growth, India is poised for an impressive 6.1% growth this year.

Underlying Geopolitical Dynamics

Other critical aspects, apart from economic metrics, play into this geopolitical puzzle. India’s active participation in the Quadrilateral Security Dialogue (QSD) or the Quad, designed to keep China’s territorial ambitions in check, has gained prominence post the 2020 events. Moreover, while China and Russia experience a Western tech collaboration drought, India finds itself gravitating more towards U.S.-led alliances. India’s recent lunar success, showcased during the BRICS summit, hints at an emerging technological chasm within BRICS.

Despite speculations that China and Russia might channel their gold reserves to support the new BRICS currency, and given that China and India together contribute to nearly half of the global gold demand, the intricate web of security concerns, alliances, border issues, technology, and trade dynamics appear to be deepening the chasm between the two Asian giants.

Without a harmonized approach at platforms like the G20 and an unwavering commitment to their trading bloc, the dream of a gold-backed BRICS currency may remain distant.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628