Robert Kiyosaki Warns of BRICS Gold-Backed Crypto Impact on USD
Renowned author Robert Kiyosaki, known for his bestseller "Rich Dad, Poor Dad," has raised concerns about the potential repercussions of a gold-backed cryptocurrency proposed by BRICS nations on the dominance of the U.S. dollar.
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has been exploring strategies to reduce reliance on the U.S. dollar and Euros in international trade, with digital technology and blockchain among the considered options.
Kiyosaki warned that the introduction of a BRICS gold-backed crypto could trigger a crash in the U.S. dollar, leading to hyperinflation in the United States.
The shift away from the U.S. dollar has been gaining momentum, as highlighted in a recent IMF report showing a decline in the dollar’s dominance in cross-border transactions, from 80% in 2010 to 50% in 2023.
Conversely, China’s Renminbi (RMB), a key BRICS member, has seen its share rise significantly over the same period. Should BRICS proceed with a gold-backed cryptocurrency, it could further erode the U.S. dollar’s status as the primary currency for global transactions, potentially prompting BRICS countries to divest their USD reserves, exacerbating inflation in the United States.
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In response to the looming threat, Kiyosaki advised investors to hedge against currency devaluation by acquiring tangible assets like gold, silver, and Bitcoin.
Despite the warnings, the formalization of a BRICS gold-backed cryptocurrency remains uncertain. While Russia has shown some openness to the idea, other BRICS members, such as India, have emphasized a preference for trading using their respective currencies rather than adopting a common digital currency.
Further clarity on the matter may emerge during the upcoming BRICS summit in Russia, scheduled for October 2024.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
