The process of de-dollarization is steadily gaining momentum and proving to be an irreversible trend in the global economic landscape. A key driver of this transformation is the collective effort of BRICS countries (Brazil, Russia, India, China, and South Africa) to move away from the U.S. dollar-based global trade system. For decades, the U.S. dollar has served as the world’s primary reserve currency, bolstering America’s position as the dominant global power. However, BRICS countries are now working on creating their own digital global settlement currency, which could potentially upend the existing financial order, making them more resilient against Western sanctions and strengthening their global influence.
The De-Dollarization Shift while mainstream media sleeps
The de-dollarization movement represents a significant shift away from the traditional financial order that has been dominated by the U.S. dollar for decades. While the U.S. dollar’s status as the world’s primary reserve currency has brought certain benefits to the United States, it has also given rise to concerns among other countries about their vulnerability to American economic and financial influence. Over the years, these concerns have grown, leading to a push for de-dollarization.
One of the driving forces behind this shift is the realization that being overly reliant on the U.S. dollar can have severe economic and geopolitical implications. The dollar’s role as the world’s primary reserve currency has allowed the United States to wield considerable influence over global financial institutions, trade, and international relations. This dominance has often been used to enforce economic sanctions and exert pressure on countries that do not align with U.S. interests.
BRICS Countries’ Push for Independence in De-Dollarization sphere
BRICS countries have been at the forefront of the de-dollarization movement. These emerging economic powerhouses recognize the need to reduce their dependence on the U.S. dollar and create a more balanced global financial system. In pursuit of this goal, they have been taking concrete steps to circumvent the U.S.-dominated financial system.
One of the most significant developments in this regard is the BRICS initiative to create their own global settlement currency. This digital currency will serve as a means for international trade settlements, reducing the reliance on the U.S. dollar for cross-border transactions. This effort is a direct response to the challenges posed by the U.S. dollar’s dominance and the vulnerability it imposes on the economies of BRICS nations.
The Rise of Digital Global Settlement Currency
The planned digital global settlement currency represents a groundbreaking departure from traditional currency systems. Unlike physical paper bills or even digital currencies like the big two stable coins Ethereum and Bitcoin, this new currency will not be used for everyday transactions. Instead, it will have a specific, vital role in the international trade arena .
The primary function of this digital global settlement currency is to facilitate international trade by acting as a bridge currency. When two countries trade with each other, they often use a third currency as an intermediary to settle transactions. Currently, the U.S. dollar plays this role for most international trade. However, with the introduction of the digital global settlement currency by BRICS nations, they aim to shift this balance.
This new digital currency will be fully digital, with no physical representation. It will be used exclusively for international trade settlements. This means that countries will not exchange paper bills or coins but digital tokens representing the value of goods and services in the international market. It will function as a neutral and efficient medium of exchange for cross-border transactions, reducing the influence and dominance of the U.S. dollar in international trade.
BRICS Countries Showing Unstoppable Resilience Against Western Sanctions
A significant advantage of the digital global settlement currency is that it can provide BRICS countries with increased resilience against Western sanctions. Historically, the United States has wielded its economic and financial power to impose sanctions on countries that do not align with its foreign policy objectives. These sanctions can have devastating economic consequences, disrupting trade, causing inflation, and damaging the targeted nations’ economies.
By adopting their own global settlement currency, BRICS countries can reduce their susceptibility to such sanctions. With digital currency, they can conduct international trade without relying on the U.S. dollar as an intermediary. This reduces their exposure to the risk of sanctions that could be imposed by the United States. As a result, these countries become more self-reliant and better insulated against the influence of Western powers. Blockchain developers are part of the CeFi to DeFi army of tech-savvy creatives building the Blockchain platform as well as the interconnected bridges between the blockchains so as to bank the poor unbanked of the world.
Rebalancing of the Global Finance playing field for the Billions of Unbanked people
The process of de-dollarization, led by BRICS countries, is not just a passing trend but an irreversible shift in the global economic landscape. The creation of a digital global settlement currency represents a significant step toward reducing the influence of the U.S. dollar in international trade and enhancing the resilience of BRICS nations against Western sanctions.
As this initiative gains momentum, it has the potential to rebalance the global financial system, create a more equitable international trade environment, and redefine the power dynamics in the global economic arena for Billions of unbanked citizens. While this transition may take time to materialize fully, it is evident that the de-dollarization movement is on an unstoppable path to the end of mainstreet money as we have known it for centuries..