A new BRICS currency looks inevitable as the bloc is looking to formulate new alternatives to ditch the US Dollar. The BRICS alliance is looking to replace USD with a new currency creating a new world order. The bloc is advancing towards producing a ‘multipolar world’ where the US and its Western allies will no longer have power and control over other nations.
The group is convincing developing nations in Asia, Africa, and South America to ditch the US dollar. They are also bringing more interest to the idea of joining the bloc and adopting a new currency, which is expected to be backed by gold. Currently consisting of nine members, more countries are expected to be invited to BRICS in the coming months and at the upcoming October summit in Russia.
Also Read: Goldman Sachs Projects BRICS To Be World’s Biggest Economy in 2075
BRICS Currency: How will the New Currency Work?
Recently, Iran proposed a new idea for the upcoming currency. The country is supporting the de-dollarization initiative and wants to link all of the BRICS nations’ payment systems into one. According to Iran, this unified BRICS currency could do enough to overpower the US Dollar. If this were to happen, it is certainly possible that the BRICS currency could be worth more than the greenback.
Furthermore, with the bloc committed to de-dollarization, BRICS could be set to launch its very own currency exchange platform. The Atlantic Council’s GeoEconomics Center released a report pondering the potential for the alliance’s developing payment system. The think tank noted that its current developments “form the basis for a currency exchange platform,” in the coming years.
Also Read: Standard Chartered, JPMorgan Blockchain Payment Firm Raises $60M
In terms of the idea of the new, unified currency, Iran and Russia already appear on board with the concept. Another country that will likely side with the united BRICS currency is Saudi Arabia. The Kingdom has also had its issues with the West since the implosion of the Petrodollar. China is currently increasing its Gold reserve ahead of the BRICS currency potentially being backed by the precious metal. While all nations in the alliance haven’t agreed on the exact plan for the new currency, new ideas are being thrown around, and the overall concept of de-dollarization remains key.
