“The De-Dollarization Revolution”

5. The first viable, useful alternative to the U.S. dollar: The common BRICS currency is sometime away but it has apparently already been ‘coined’ – the R5. This is a reference to the five currencies used by the current BRICS members – the Renminbi, Ruble, Rupee, Real and Rand. This could be backed by gold. The need to establish an alternative to the US Dollar in trade due to its use by the United States in imposing or threatening sanctions. The initial stage, which is already occurring, is to increase the trade use of their respective currencies.The second step in liberalizing BRICS trade from US dollar and euro use is the introduction of sovereign digital currencies. This is en route: China, India and Russia are all currently holding usage trials of their respective national currencies, which will be backed by, and managed by their respective Central Banks, just as ordinary sovereign currency is.The introduction of digital sovereign currencies will mean that the BRICS nations will be able to exchange financial data and transactions without the need to go through the global SWIFT transactional system.Therefore, the concept of a common BRICS currency is not really a requirement at this stage. In any event, it will likely manifest itself only after a global digital financial transformation has been completed, while there are other issues about who would run and be responsible for acting as the Central Bank.The BRICS SUMMIT represents a significant milestone as they potentially introduce the first credible and practical alternative to the U.S. dollar. This alternative system could provide countries with greater flexibility and autonomy in conducting international financial transactions, reducing their dependence on the U.S. dollar as the primary reserve currency. Such diversification can bolster economic stability and resilience while fostering a more multipolar global financial order. By challenging U.S. financial dominance, mitigating the risks associated with the U.S. dollar, addressing inflation concerns, simplifying trade agreements, and presenting a viable alternative currency system, the Accords have the potential to reshape the global economic landscape and usher in a new era of financial cooperation and stability. Here Are The Top Eight Reasons Why De-dollarization Could Potentially Cause Your Bank and Retirement Accounts In the U.S. To Lose Value: 1. Drop in Dollar Demand: If countries reduce their reliance on the U.S. dollar for international trade, the lower demand can negatively impact its value — hence, reducing the value of your dollar-denominated assets. 2. Depreciation of the Dollar: The diminished role of the U.S. dollar in global markets may lead to depreciation in its exchange rates against other currencies. This affects the global purchasing power of your dollar-denominated assets.