Reduce US Dollar Use, BRICS Prepare Alternative Currency, Will Gold And Crypto Support?

BRICS countries are preparing alternative currencies to counter US dollar dominance. (Photo; Doc. Ghana News)

JAKARTA - The Russian government has again revealed plans to create a new global currency that does not use US Dollar. This plan is part of the BRICS business, a group of countries currently consisting of Brazil, Russia, India, China, and South Africa, which aims to create an alternative currency that can avoid using the US Dollar.

According to Anatoly Aksakov, Chairman of the Russian State Duma Financial Market Committee, talks on how the new currency will work have started and an agreement may be reached by the end of this year. The mechanism of BRICS' new currency itself is not final, but the plan is to be supported by gold and possibly precious metals and other assets.

Aksakov also added that American sanctions have gone too far, with dollar politicization and actuating the movement away from the dominance of the US global currency. "By connecting the economy and its currency with politics, the US actually weakens the basics of its dominance. I believe that the dollar will continue to decline in world trade," he said.

This move is also an indication of BRICS being ready for a massive expansion, as as as many as 19 additional countries are reportedly interested in joining this group. According to South African BRICS Ambassador Anil Sooklal, this proves that the strength and influence of BRICS continues to grow.

However, BRICS' efforts to create this new currency will face many challenges. Not all countries in BRICS have the same thoughts about this move, and they may have different opinions in regulating new currency mechanisms and policies. In addition, the success of this new currency also depends heavily on the economic stability and security of BRICS countries.

Nonetheless, the plan to create a new currency by BRICS could pose a serious threat to the dominance of the US Dollar as a global currency. The use of Dollars in world trade has provided many advantages to the United States, including the ability to print nearly unlimited money.

With a new currency backed by gold and other assets, it can add stability and confidence in this new currency, as well as reduce profits held by the US Dollar. However, it is not yet known whether the alternative currency will be supported by crypto assets or not.

In the long term, BRICS' efforts to create this new currency could bring major changes to the global economy, especially for countries within the BRICS group. However, whether this new currency will be successful and able to challenge the dominance of the US Dollar is still a big question.