Rusia confirm his gold backed digital currency.

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Russia has confirmed that it will introduce a new trading currency backed by gold along with Brazil, India, China, and South Africa, also known as BRICS nations. The official announcement was made during the BRICS summit in August in South Africa. Additionally, Russia’s largest bank, Sber, has issued gold-backed digital financial assets (DFAs) as part of the broader de-dollarization plan. 

In January 2023, the Central Bank of Iran was in talks with Russia to create a stablecoin for foreign trade settlements, to replace the dollar, ruble, and Iranian rial, which would be backed by gold and operate in the special economic zone (SEZ) in Astrakhan. Furthermore, Iran and Russia are reportedly collaborating to launch a gold-backed stablecoin, “Token of the Persian Gulf,” which will serve as a mode of payment for international trade and not rely on fiat.

while the idea of a BRICS common currency backed by gold is tantalizing, it’s essential to distinguish between speculation and concrete developments. Gold’s value remains robust, and any official announcement or significant progress in this direction would likely provide a temporary boost to gold prices. Until then, it’s wise to approach these rumors with skepticism and focus on the broader trends that underpin the precious metals market.

In the ever-evolving landscape of global finance, rumors of the BRICS nations, a group comprising Brazil, Russia, India, China, and South Africa, coming together to create a common currency have stirred curiosity and excitement. Speculation has run rife, with some suggesting that this currency could be backed by gold. However, before we delve into the implications for the price of gold, it’s essential to separate fact from fiction and scrutinize the sources of these rumors.

The notion of a common currency among the BRICS nations is not entirely new. Countries have been exploring alternatives to the dominant US dollar for some time now. Yet, the recent surge in speculation seems to have its origins in Russian state-run media outlets, particularly citing a tweet from the Russian Embassy in Kenya. This raises questions about the reliability of the information and whether it’s merely a strategic move by some of the member nations. Russia, currently grappling with extensive financial sanctions, could be motivated to push for such a currency to bypass the US dollar and assert its economic independence. However, it’s important to remember that wanting such a system and successfully launching it are two vastly different things, especially when trying to align the interests of five, let alone 46, nations.

While the creation of a common currency might be in the best interest of the BRICS bloc, there are dissenting voices within the group. India, for instance, has expressed its focus on strengthening its own currency, the rupee, rather than participating in a new common currency venture. Such divisions cast doubt on the feasibility and consensus required for this endeavor. Moreover, the sources of these rumors have questionable credibility, with reports often tracing back to state-run media outlets and embassy tweets. This makes it challenging to determine the veracity of the claims and whether they are indeed indicative of a forthcoming announcement.

For the precious metals market, the speculation surrounding a BRICS common currency and its potential gold backing has led to predictions of a gold rush. However, these predictions rely heavily on the aforementioned questionable sources. Therefore, it’s vital to approach such forecasts with caution. What we can say with more certainty is that gold continues to demonstrate its worth as a store of value. Central banks have been acquiring gold at record levels, indicating a growing interest in the precious metal. This suggests that gold could play a role in any new currency or trade model that emerges, but the specifics remain uncertain.

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