- The BRICS bloc is challenging the dominance of the US dollar amid a growing de-dollarization movement worldwide.
- Experts warn that the US dollar may be nearing its end due to economic instability and criticism of US financial policies.
The BRICS bloc is positioning itself as a challenger to Western financial dominance, with the US dollar facing increasing pressure. The de-dollarization process has accelerated globally, and experts argue that the dollar might be nearing its ‘peak.’ Other economic problems in the United States can compound the problem and may lead to a perfect storm for the currency.
The BRICS countries, Brazil, Russia, India, China, and South Africa, have been quite vocal against the US dollar in their strategies. This opposition is evident in the bloc’s advocacy of local currencies, signifying a move towards a new world order.
BRICS Pay System Launch Expected to Reduce Dollar Usage
With the 2024 BRICS summit approaching, further developments in de-dollarization are expected. A key achievement is the expected launch of the BRICS Pay system that may strengthen the efforts of the group to decrease the usage of the US dollar.
Besides the policies implemented by the BRICS countries, the group has also witnessed some growth in the past year. The bloc has included nine countries in its membership, and many other countries are interested in further cooperation. This enhanced coordination and the group’s efforts to decrease reliance on Western economies may present risks to the dominance of the US dollar as the world’s reserve currency.
While BRICS threatens the dollar, experts are beginning to sound the alarm on the currency’s future. Robert Kiyosaki, the writer of the book ‘Rich Dad Poor Dad’ has raised concerns about the US economy. He said that the country is “in the middle of a crash.” In his recent episode of the podcast known as The Rich Dad Channel. Kiyosaki said that the economic crisis may continue to deteriorate, and the dollar will likely drop.
Kiyosaki targeted the US leaders such as President Joe Biden, Federal Reserve Chair Jerome Powell, and Treasury Secretary Janet Yellen. He pointed out that their policies, which include increasing the amount of money in circulation, have worsened the country’s economic situation. His comments suggest that the US economy remains highly vulnerable, as the dollar’s position as the world’s reserve currency has always implied.
Bitcoin and Gold Emerge as Rivals to US Dollar Dominance
Besides the de-dollarization attempts made by BRICS, other currencies and financial instruments are also emerging. Bitcoin and gold have become the main rivals to the US dollar. Kiyosaki has been vocal about the possibilities of these alternatives, especially given the economic turbulence seen in the major central banks.
The BRICS group has gone further in exploring the use of gold in a new payment system that could threaten the dollar. As previously reported by CNF, Russian President Vladimir Putin, during his recent speech at the Russian Energy Week forum, highlighted the importance of an alternative payment system for BRICS countries.
