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BRICS De-dollarization. Goodbye Dollar; Hello Blockchain!

BRICS De-dollarization Is Essentially The Fight For Freedom


Central to America’s power and prestige in global leadership is the dollar. The 2007/08 global financial crisis that started in the US highlighted that America is no longer a reliable leader. It follows therefore, that there is no longer any rationale to maintain the dollar’s hegemonic position in the global financial system.



A fundamental prerequisite to disentangling the world from the debilitating economic clutches of the West is to relegate the US dollar to an “also ran” footnote; which will inevitably torpedo the influence of the World Bank and the IMF. The World Bank and the IMF operate in US dollars and provide financial assistance in US dollars, which gives them significant influence over countries that are dependent on US dollar-based financing. BRICS-Plus countries, including India and Saudi Arabia, are committed to de-dollarizing their economies and cross-border trade. They have taken several measures to relegate the US dollar to auxiliary currency status. The more significant measures so far, include bilateral currency swap agreements allowing them to conduct trade and investment in their local currencies without having to convert to US dollars.


Russia’s Minister of Foreign Affairs, Sergey Lavrov, stressed the need for joint efforts to counter Western countries’ “destructive actions” on Monday, 10th April 2023 at a meeting with ambassadors from the BRICS countries, Russian news agency Tass reported.


BRICS is essentially the fight for freedom. The BRICS nations are reportedly working on creating a new form of currency, a topic that is expected to be discussed at the next leaders’ summit. “The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future,” said State Duma Deputy Chairman Alexander Babakov. South Africa will host the next BRICS summit in June 2023.


Many people believe that the introduction of a BRICS currency could jeopardize the USD’s status as the world’s reserve currency. Economist Jim Rickards said in April 2023 that the U.S. dollar’s greatest enemy as the world’s reserve currency is the Treasury; which has weaponized the dollar and frozen the reserves of Russia’s central bank. Citing a similar reason, investment manager Larry Lepard predicted that the U.S. dollar could lose most of its value in five years.


BRICS countries have never hidden their agenda to diversify the global currency and financial system. It was a publicly declared priority for BRIC when the group first gathered in 2009. It was repeated after South Africa became the 5th member. Historically, all five members have experienced US sanctions. Russia and China are still under various levels of US sanctions. Is it any wonder therefore that BRICS members are strongly incentivized to mobilize toward de-dollarization!



It is now evident that the SWIFT cross border payments system is a slave to US foreign policy. Therefore, BRICS countries have been exploring and promoting regional and multilateral payment systems that bypass the US dollar. China has established the Cross-Border Interbank Payment System (CIPS), which facilitates trade and investment in yuan with other countries. Similarly, Russia has developed the System for Transfer of Financial Messages (SPFS), which allows for cross-border transactions in roubles. They have also been diversifying their reserve currencies. Significantly, China, India and Russia have been increasing their holdings of other currencies, such as the yuan, yen, and gold, as alternatives to the US dollar.


BRICS-Plus countries are making significant strides to promote greater financial and economic freedom and sovereignty. Reducing global reliance on the World Bank and the IMF as providers of US dollar-based financing is a path to liberation. The world is relishing the prospect of amputating the West’s ability to shape their domestic policies through oppressive conditions attached to their financial assistance. Thankfully, the world no longer has to fight deadly, destructive wars for their freedom. Although, America might, foolishly insist. Think of the BRICS bloc as the modern day geopolitical equivalent of the famed 80’s TV series, “The A Team”, with Russia and China playing Hannibal Smith & Mr. T, the leaders and tacticians. Against seemingly impossible odds, they have pledged to ride to the rescue of weak and helpless nations, to set them free from their Western oppressors. The weapon of choice: De-dollarization. Goodbye dollar. Hello blockchain!

 

However, BRICS must assiduously avoid replacing the US dollar with another global hegemonic currency, like the renminbi. The more equitable path to de-dollarization seems obvious. BRICS countries must adopt blockchain technology in international settlements. The obvious immediate choice is already available. XRP of course. But there may be valid reasons to avoid using technology developed by Americans, controlled by Americans and operating in America.

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