According to one expert, a gold-backed BRICS currency could be the key to eventually ditching the US dollar. Although the alliance’s national currencies have become secondary, a significant increase in the value of gold could play a key role in a global de-dollarization effort.
In a recent interview, Chris Marcus of Arcadia Economics spoke about the important role that gold will play, and whether the region may introduce its own currency at the upcoming BRICS summit in 2024. The event is expected to feature a number of important announcements, specifically potentially targeting the ongoing challenge to the global dominance of the US Dollar.
A BRICS gold-backed currency is coming? One expert says it could be a game changer
2024 will be a big year for the BRICS countries, and the upcoming summit is just the beginning. There are rumors that the BRICS Pay system will be launched at the event. The blockchain-based payment platform will set a new standard for trade settlements in the Southern Hemisphere.
However, many are hoping that the BRICS will introduce their own currency. Specifically, this trade currency has been planned for some time. According to one expert, a gold-backed BRICS currency could play a key role in ending the US dollar.
In a recent interview, Chris Marcus pointed out the growing influence of gold, which has just broken yet another all-time high this year. For Marcus, a key part of this is central bank purchases. Driven by the BRICS bloc, the acquisition strategies of global banks have surged since 2022.
But this represents a much more significant aspect of the global economy: for Marcus, it is a sign of “weakening trust in the traditional monetary system,” a sentiment that will be further fuelled by the BRICS currencies.
Marcus spoke about what he called “Unit”, a BRICS reserve currency backed by gold, whose existence would bring about major changes to the entire global financial structure, as it would create a global competitor to the US dollar.
Its introduction will obviously be a success story. But the effect it will have on metals is undeniable. There appear to be some barriers to entry for countries wanting to transact on the BRICS Pay platform. But gold assets do not require blockchain infrastructure. They rely only on gold, one of the most fundamental strategic reserve assets.
