Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
- The BRICS summit focused on reducing dependence on the U.S. Dollar, with discussions on alternative payment options and the establishment of a BRICS Grain Exchange.
- BRICS nations, led by China and India, have surpassed the G7 in global GDP at purchasing power parity, highlighting their growing economic influence.
- Gold reserves have reached a 30-year high, driven by BRICS nations, signaling potential shifts in global monetary influence.
This month’s BRICS summit was arguably one of the most important major economic events of the year. During the reunion Brazil, Russia, India, and South Africa—as well as the new joiners—spoke about many topics, notably the block’s desire to become less dependent on the U.S. Dollar.
Today, the American-emitted currency makes up almost 50% of the world’s international trade and consolidates the U.S. as the dominant economic power. However, this unprecedented economic growth from China over the last 20 years and the harsh economic sanctions on Russia since the Ukraine war have led most BRICS nations to want to become more independent regarding international trade.
During this year’s election campaign, Donald Trump was very vocal about wanting to secure the greenback as a worldwide reserve, and he even plans to use cryptocurrencies to help strengthen the Dollar.
Donald Trump’s worries are not unfathomable. In 2023, BRICS overcame the G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) in global GDP at purchasing power parity. Today, the economic growth led by China and India solidifies BRICS’ position as a dominant force in the global economy.
During this year’s summit, the nations spoke about setting up new payment options outside of the U.S. Dollar – including BRICS fiat currencies like the Ruble, Yuan, Real, and others – as well as potential payments in gold. Russia also announced the desire to start a new commodity trading platform among BRICS nations (BRICS Grain Exchange), potentially expanding even further out of American sanction’s reach.
World Gold Reserves Continue to Increase
On October 26th – LSEG Datastream reported that gold reserves are currently at a high unseen in over 30 years. Gold itself is up 33% over the year, outpacing other markets like Nasdaq 100 and S&P 500.
BREAKING: Central banks now hold 12.1% of global gold reserves, the highest level since the 1990s.
This percentage has skyrocketed this year and has more than DOUBLED over the last decade.
China, India, Turkey, and Poland have been the largest contributors to global central… pic.twitter.com/waIpBSI55H— The Kobeissi Letter (@KobeissiLetter) October 26, 2024
This unprecedented gold rush is led by two BRICS nations, China and India. These countries are then followed by Turkey and Poland.
While this increase in gold reserves effectively means nothing by itself – when pairing it with the reports of the BRICS de-dollarization dream, it could send warning signs that the U.S. could be losing its monetary influence in the future.
However, while the BRICS nations are making strides towards de-dollarization, it’s important to note that the U.S. dollar’s position is unlikely to weaken abruptly. The dollar’s strength is reflected in the US Dollar Index (DXY), which is around 104.45 as of October 2024, meaning that the fiat is far from losing its rank as the most influential currency in the world.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.