Ruler Jim O'Neill, the English market analyst credited with instituting the abbreviation BRIC, has made sense of the fact that the U.S. dollar will lose its predominant status. He anticipates that the Indian rupee and the Chinese yuan will become "much more important currencies for the world."
In a couple of interviews this week, British economist Lord Jim O'Neill discussed de-dollarization and the possibility of a proposed common BRICS currency or the Chinese yuan replacing the United States dollar as the world's reserve currency. Over 20 years ago, O'Neill, an economist who worked for Goldman Sachs, came up with the acronym BRIC to describe the economic potential of Brazil, Russia, India, and China. South Africa joined the gathering a couple of years after the fact, and the abbreviation was changed to BRICS. Northern Gritstone, a venture capital firm, now has O'Neill as its chair.
In an interview with Going Underground on Wednesday, he stated that he is of the opinion that the United States dollar will eventually lose its status as the world's reserve currency.
"The idea that the dollar will remain king forever, I think, is probably unlikely … At some point the dollar will lose its dominant status."
He does not, however, anticipate that the proposed BRICS common currency will succeed the US dollar as the world's dominant currency. In a Thursday interview with IC Intelligence chief economist Dr. Desné Masie, he called the idea of a BRICS-wide currency "ridiculous" and "amusing." He emphasized the fact that "China and India never agree on anything," noting that "they can't even really agree on basic things like a peaceful border."
The former economist at Goldman Sachs stated:
" What is more feasible, and more likely, is at some point in the future, the RMB [renminbi], and possibly the rupee are going to be much more important currencies for the world."
Additionally, he gets into the details: "As the two largest countries in the emerging world, I do believe that if China and India could ever reach a consensus, that would probably speed up the end of the dollar's dominance.
O'Neill made the following observation regarding the possibility that the Chinese yuan will become the world's dominant currency: Your currency loses its primacy when you are no longer the world's largest economy. Therefore, the dollar probably won't be worth as much as it is now if China grows to be significantly larger than the United States. But that's the way life is."
However, in order for the Chinese yuan to become "the preferred global currency," the economist outlined a number of obstacles it would need to overcome. He elaborated: People from anywhere in the world must be permitted and encouraged to hold their wealth in your currency with confidence and without fear of unexpected events. You must have a critical level of straightforwardness as well as liquidity. And I don't think the CCP has the authority to do that either.
The BRICS countries have been ramping up their de-dollarization endeavors, pushing for the utilization of public monetary standards in exchange repayments. At the upcoming leaders' summit of the economic bloc, it is anticipated that a proposal for a common BRICS currency will be discussed. Joseph Sullivan, a former White House economist, is one of many who believe that the dominance of the U.S. dollar will be eroded by a successful BRICS currency.
With respect to the BRICS, which will ultimately equal the Gathering of Seven (G7) on the worldwide stage, O'Neill said:
" Economically, it already is … Last year’s GDP data shows that collectively they are now, in PPP terms, already bigger than the G7."
“By the end of this decade, India will be close to surpassing Germany, and China will be pretty close to the size of the United States. As a result, two of the BRICS nations have economies that are among the world's four largest.
(Kevin Helms ,Bitcoin News, 2023)