On Friday, Vladimir Putin spoke about the upcoming BRICS payment system at the St. Petersburg International Economic Forum (SPIEF) in Russia. In the address, Putin stated that they are developing a payment system that is free from "political pressure, abuse, and external interference".
The announcement comes just a couple of years after Russia was cut off from the international SWIFT payment system due to its invasion of Ukraine. The BRICS is a group of emerging economies composed of member states Brazil, Russia, India, China, and South Africa.
Putin also highlighted that this year the BRICS group added a slew of new members including Saudi Arabia, Iran, UAE, Egypt and Ethiopia. The increasing strength of the BRICS alliance suggests that we are heading closer toward a multi-polar world.
https://x.com/BRICSinfo/status/1799076853300511093
De-Dollarization Accelerating
With rates at over 5%, and as US debt closes in on $35 trillion dollars, more and more investors are starting to lose faith in America's ability to make good on its interest payments. In a previous article, we discussed how China has been dropping US treasuries in favor of gold, possibly in preparation for a new gold-backed BRICS currency.
In addition to China, there are other countries that have been gradually decreasing their dependence on the US dollar. With Putin's announcement at the SPIEF, it seems we are getting ever closer to a US dollar alternative, which will likely backed by valuable physical commodities.
The ultimate question is, will a BRICS currency be able to compete with the likes of Bitcoin and other grassroots censorship-resistant cryptocurrencies, which have been building strong and dedicated communities over the course of several years.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
Until next time...
Resources
Putin Xi Image [1]