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Russia is openly talking about new BRICS currency as a competitor to the US dollar

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It may just be that a new world order is emerging alongside the Western world order, because according to official sources the BRICS countries are working on their own currency to compete with the US dollar. According to a top Russian official, the BRICS alliance is working on its own currency. BRICS stands for Brazil, Russia, India, China and South Africa.

Opponent for dollar and euro

If we are to believe Alexander Babakov, a high-ranking Russian politician, it is a currency that mainly favors China and the other BRICS countries and goes against the West. “The composition should be based on the establishment of new monetary links, formed on a strategy that does not defend the US dollar or euro, but a new currency that serves our shared goals,” said Babakov.

Furthermore, Babakov would have shared that the new currency is partly backed by gold and other commodities. This would make the currency fundamentally different from the US dollar and the euro, which are completely unbacked.

In that respect, it is completely an interesting competitor and would be a currency that is already moving more towards Bitcoin. This would also create a currency on the market that is more interesting to save in the long term, but that ultimately depends on the entire composition of the currency, of course.

Problem for the dollar?

This week, former Goldman Sachs chief executive Jim O’Neill wrote that the BRICS alliance would soon expand and seek to challenge the dominance of the US dollar. According to O’Neill, the dollar plays a far too dominant role on the world financial scene.

If the BRICS alliance decides to really peg their currency to gold and commodities, it could have interesting ramifications for Bitcoin. That would create a serious competitor for Bitcoin in these countries.

This would cause the currency of the BRICS countries to have a natural scarcity. Although they probably still can’t match the absolute scarcity of Bitcoin, it is certainly a competitor for the digital currency.

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