HomeNewsNew Age Gold Rush: BRICS Bet on Bitcoin Integration to Tackle the...

New Age Gold Rush: BRICS Bet on Bitcoin Integration to Tackle the Dollar

- Advertisement -
  • BRICS nations, in an unprecedented move, are acquiring massive amounts of gold to back a new currency.
  • This strategic shift could potentially challenge the U.S. dollar’s status as the global reserve currency.

The Gold-Backed BRICS Currency: A Potential Game-Changer

With the forthcoming BRICS summit in South Africa serving as a stage, an audacious move is being planned in the wings – the introduction of a gold-backed currency. The alliance consisting of Brazil, Russia, India, China, and South Africa is stepping away from the standard norm, as these nations actively amass gold in the lead-up to this potential global currency revolution.

A Golden Strategy to Challenge Dollar Dominance

Over the past 18 months, BRICS nations have amplified their gold purchasing to liberate themselves from dependence on the U.S. dollar. China, for instance, according to the World Gold Council, has procured 102 tonnes of the precious metal, while Russia added 31.1 tonnes to its reserves in the recent half-year. Meanwhile, India added a noteworthy 2.8 tonnes to its gold reserves in 2023, marking the first significant addition in over a year.

- Advertisement -

These developments serve a twofold purpose. Firstly, they prepare the grounds for a new currency, grounded not on the U.S. dollar but the enduring value of gold. Secondly, they could potentially disrupt the current U.S. dollar-dominated international monetary system, thus reshaping cross-border transactions.

The concept of a gold-backed currency isn’t new, but it is one that has a profound impact. Historically, gold has been viewed as a safe harbor, a stalwart against the unpredictable tides of economic crises. It’s an asset that’s far less likely to collapse compared to any fiat currency. The U.S. dollar, on the other hand, tied closely to the state of the American economy, is starting to be seen as a risky proposition, particularly due to the dangers of mounting national debt.

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

- Advertisement -

In light of this, countries in Asia, Africa, Latin America, and Europe are actively distancing themselves from the U.S. dollar for global settlements. This is particularly notable in a world where the implications of a potential debt ceiling crisis in the U.S. could ripple across the world, destabilizing financial structures in developing countries.

However, the introduction of a new currency backed by gold isn’t without its complexities. As Thorsten Polleit, chief economist at Degussa, highlights, the currency must be convertible into gold on demand to truly become a sound currency. This requirement could pose significant challenges and, potentially, a shock to the current global fiat money system. The aftermath could include sharp devaluation of several fiat currencies against gold, including the BRICS currencies themselves, and subsequent skyrocketing goods prices.

Undoubtedly, these developments are intriguing. The coming BRICS summit in August, the expected launch pad for the new currency, is an event to watch. The ripple effects of this bold move could resonate far beyond the borders of the BRICS countries, potentially redrawing the landscape of global finance.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
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.
Brian Johnson
Brian Johnson
A dedicated Bitcoin journalist passionate about uncovering the latest trends, developments, and innovations in the world of cryptocurrency, while delivering engaging and well-researched articles to inform and educate readers on the dynamic digital finance landscape.
- Advertisment -spot_img