BRICS Could Be Alternative Global Currency

The BRICS alliance is looking to launch a new currency to settle international trade by sidelining the U.S. dollar. The next summit in South Africa will see the creation of a new tender that could challenge the U.S. dollar. The hegemony of the USD faces an existential crisis as developing countries advance to uproot it from the global reserve status. The new BRICS global currency could gain strength as newer nations accept it to settle cross-border transactions.

Also Read: What Happens if Saudi Arabia Accepts BRICS Currency?

BRICS is an acronym for Brazil, Russia, India, China, and South Africa. So will the U.S. dollar fade into the wilderness if the BRICS currency gains prominence? Well, the answer is not so fast.

BRICS: The Alternative Global Currency

brics nations flags gold
Source: VCG / ChinaDaily.com.cn

While the U.S. dollar is the de facto and supreme currency, the new BRICS tender might be an alternative payment method. For BRICS currency to survive, it needs to compete with other existing currencies like the Dollar, Euro, Pound, and Yen. It takes years to establish trust in the markets and the new currency will not have it easy.

Also Read: After BRICS, 10 ASEAN Countries Ditch The U.S. Dollar

The majority of the world prefers trading in the U.S. dollar. Only a portion of the global trade could be settled in the new BRICS currency. The United States is the most influential country that commands the top position in the global markets. While other countries could diversify their reserves with gold and BRICS, the U.S. dollar will remain dominant.

In the long run, both the U.S. dollar and BRICS could go hand-in-hand and survive in the global financial markets. There are relatively slim chances for global trade to survive without the backing of the U.S. dollar.

Also Read: Ahead of Joining BRICS, Iraq Issues Ban on U.S. Dollar Transactions

However, the developments indicate that the developing countries are looking to end reliance on the U.S. and begin fresh. In conclusion, this could lead to reduced exposure for the U.S. to dictate financial policy decisions on developing nations.

  • BRICS
  • BRICS Currency
  • US DOLLAR

Comments

Post a Comment

Popular posts from this blog

Binance Australia raided by regulator just weeks after Europe HQ raid

Binance Australia’s offices have been raided by the nation’s finance regulator in an ongoing investigation into unlawful derivatives dealings — just weeks after the crypto exchange’s offices in France were raided as part of a money laundering probe. The Australian Securities and Investments Commission (ASIC) searched Binance locations on Tuesday, according to Bloomberg. The outlet cited anonymous sources familiar with the matter, who chose to keep their identities concealed. An ASIC spokesperson said it could neither confirm or deny the reports. Binance stated that it’s “fully cooperating” with local authorities. The news comes after Binance Australia had its derivatives license revoked in April. According to ASIC, it’s investigating the “extent of consumer harms” caused by the crypto exchange to local users. ASIC is probing allegations of Binance incorrectly classifying retail and wholesale investors in its derivatives business. Binance Australia ’s fiat on-ramp services we...
Read more

Toncoin (TON) Rallies 15% After Binance Listing: $10 Soon?

Image
The world’s largest crypto exchange by volume, Binance, has announced that it will begin spot trading for Toncoin (TON) from today. The development has led to a significant price rally for TON, which witnessed a 15% price bump following the news. The daily charts show that the asset is currently up by 8.4%. TON continues to glow red in the other time frames, falling 7.8% in the last week, 5.7% in the 14-day charts, and 14.2% over the previous month. Also Read: Toncoin (TON): The Telegram-Linked Crypto to Watch in 2024 Current Performance and Market Position Source: CoinGecko TON is currently the second-best performing cryptocurrency among the top 100 projects by market cap in the daily charts, following XRP. Recent Price Movements TON has displayed incredible performance this year. The asset was trading at around $2 in late February but has since risen to over $6. Based on the Telegram network, TON saw a significant price increase after integrating into the Telegram messaging plat...
Read more

copycat Stars Arena patches exploit on Friend.tech following a financial drain

Image
The Stars Arena has made a significant announcement, revealing that malevolent forces have been siphoning funds through a cunning loophole. However, the team has swiftly taken action, successfully patching the contract to avert any further harm. As per reports circulating on social media, the Stars Arena Web3 social media platform on the Avalanche network has fallen victim to a malicious attack. This unsettling incident was brought to light by a Stars Arena user, Lilitch.eth, on October 5, who took to X (formerly Twitter) to declare that over $1 million had been lost as a result. The Stars Arena team has unequivocally acknowledged this audacious attack, characterizing it as nothing short of a “war” waged against their platform. Surprisingly, they assert that the actual losses incurred amount to a mere $2,000, affirming that they have successfully plugged the exploit . Stars Arena, much like the popular Friend.tech, empowers users to acquire “shares” in the f...
Read more