- BRICS gold-backed crypto will severely affect the U.S. dollar, per Kiyosaki
- However, BRICS member states still don’t have an official consensus on a common currency.
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has underscored the severe impact of BRICS gold-backed crypto on the U.S. dollar.
As part of their de-dollarization plans, the BRICS nations—originally formed by Brazil, Russia, India, China, and India—have explored various ways to conduct cross-border trades without relying on the U.S. dollar and Euros.
Digital technology and blockchain are part of the plans. Additionally, a gold-backed currency has also been floated.
According to Kiyosaki, should BRICS formalize gold-backed crypto, the U.S. dollar will crash,
“If BRICS gold crypto happens trillions in fake money, fiat US dollars will come rushing back to home to America causing hyperinflation in America, ultimately destroying US dollar.”
BRICS move: A threat to USD and a win for Bitcoin?
In the past, U.S. dollars accounted for almost 100% of cross-border transactions, including oil purchases.
However, a recent IMF report established that the U.S. dollar’s dominance has declined, dropping from 80% (2010) to 50% (2023).
On the contrary, China’s Renminbi (RMB), a member of the BRICS, has jumped from zero to 50% over the same period.
If the BRICS gold-backed crypto follows RMB’s steps, it will further dent U.S. dominance on cross-border payments.
That means BRICS countries could offload their USD reserves back to the U.S., and according to Kiyosaki, such an upsurge in supply could cause “hyperinflation in America.”
For diversification and investor protection in such a scenario, Kiyosaki urged his followers to buy Bitcoin [BTC] and metals,
“Best buy real gold, silver, and Bitcoin now, and protect yourself from the crash of the US dollar.”
However, an official BRICS gold-backed crypto could still be far away.
In August 2023, India’s foreign secretary, Vinay Mohan Kwatra, underscored BRICS members’ preference for trading using respective currencies rather than a common one.
Although Russia warmed up to a common currency in March 2024, with blockchain and digital technology in mind, all BRICS members are yet to communicate an official consensus.
Perhaps more clarity could be shed during the upcoming BRICS summit in Russia, scheduled for October 2024.
