Economist and author of "Currency Wars," Jim Rickards, has predicted the launch of a new BRICS currency, stating that it "could weaken the role of the dollar in global payments and ultimately displace the U.S. dollar as the leading payment currency and reserve currency." Rickards' prediction was made in response to the publication of his book. He emphasized that "the world is unprepared for this geopolitical shock wave" and that "the BRICS+ present a realistic effort to de-dollarize global payments and eventually global reserves," adding that "the process by which this will happen is unprecedented."
In an opinion piece that was published earlier this week by the Daily Reckoning, economist and author of "Currency Wars," Jim Rickards, predicted that a proposed BRICS currency would challenge the dominance of the United States dollar. The heads of the BRICS countries (Brazil, Russia, India, China, and South Africa) are supposed to examine the proposed normal money at their next chiefs' culmination in August.
Rickards wrote, elaborating: "On Aug. 22, about 212 months from today, the most significant development in international finance since 1971 will be unveiled."
"It involves the rollout of a major new currency that could weaken the role of the dollar in global payments and ultimately displace the U.S. dollar as the leading payment currency and reserve currency. It could happen in just a few years."
"The interaction by which this will happen is remarkable, and the world is caught off guard by this international shock wave," he believed.
Rickards explained that 17 additional nations have expressed interest in joining the economic bloc, and eight have submitted formal applications to do so. The eight are Algeria, Argentina, Bahrain, Egypt, Indonesia, Iran, Saudi Arabia, and the Unified Bedouin Emirates, he points out point by point, adding that the 17 nations are Afghanistan, Bangladesh, Belarus, Kazakhstan, Mexico, Nicaragua, Nigeria, Pakistan, Senegal, Sudan, Syria, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe.
In April, Anil Sooklal, South Africa's diplomat to the BRICS monetary gathering, uncovered that 19 nations had either applied to join or communicated interest in joining. " He stated at the time, "We are receiving applications to join every day."
"BRICS is not just another multilateral debating society by any means, including nuclear weapons, population, landmass, energy output, GDP, food output, or energy output. They present a significant and believable challenge to Western hegemony. Rickards emphasized that "BRICS acting together is one pole of a new multipolar or even bipolar world."
De-Dollarization of Global Payments and Reserves The economist then talked about the global trend of de-dollarization, in which more and more countries use their own currencies to settle trade deals instead of the US dollar. What's behind this mission to dump the dollar? The author of Currency Wars explained, "U.S. weaponization of the dollar through the use of sanctions is in no small part the answer."
"Numerous different countries started to reason that they could be straightaway assuming they cross paths with the U.S. on specific issues. "In addition, that fear has significantly accelerated the movement to completely abandon the dollar system,” he continued, adding:
" The BRICS+ group presents a realistic effort to de-dollarize global payments and eventually global reserves."
According to Rickards, efforts to use national currencies "may soon be superseded by a new BRICS+ currency, which will be announced in Durban, South Africa, at the annual BRICS leaders' summit conference on Aug. 22–24."
Rickards predicted that the new BRICS currency "will be pegged to a basket of commodities for use in trade among members." Oil, wheat, copper, and other essential goods that are traded globally in specified quantities would initially comprise the BRICS+ commodity basket.
He went on to explain: The new BRICS+ currency probably won't come in paper notes that can be used for everyday transactions. It would be computerized money on a permissioned record kept up with by another BRICS+ monetary establishment with scrambled message traffic to record installments due or owing by taking an interest." He explained that this new money won't be a digital currency "since it isn't decentralized, not kept up with on a blockchain, and not open to all gatherings without endorsement."
The economist's conclusion was:
"Based on the impracticality of commodity baskets as uniform stores of value, it appears likely that the new BRICS+ currency will be linked to a weight of gold."
“This plays to the strengths of BRICS members Russia and China, who are the two largest gold producers in the world and are ranked sixth and seventh, respectively, among the 100 nations with gold reserves,” he emphasized.
While Rickards expects the disclosure of the new BRICS money at the impending pioneers' culmination of the monetary coalition, there is boundless distrust with respect to the practicality of such a cash. This suspicion reaches out to people like Ruler Jim O'Neill, the English business analyst credited with authoring the abbreviation BRIC.
(Kevin Helms, Bitcoin News, 2023)