The probable presentation of a new route plan in the de-dollarization process and the continued expansion of the BRICS bloc, under the impetus of an alliance between China and Russia, has already begun to raise red flags globally.
The issue was part of the concerns discussed at the United Nations General Assembly held a few days ago in New York, where the “growing danger” that it represents for the United States was highlighted. the progress that China and Russia are making regarding their de-dollarization.
Frederick Kempe, executive director of the Atlantic Council, a think tank based in Washington DC, and Condolezza Rice, former Secretary of State of the North American country, spoke on this topic.
Kempe expressed concerns about the American leader’s ability to emerge victorious in the upcoming elections. This concern is also supported by Rice, who argues that her country has no alternative but to get involved in the global arena and influence the international environment to change the ongoing trend.
«The real question is: do we want Russia and China to define the international environment? Or do we want to define the international environment together with our allies? said the former US official, questioning what she defines as “American isolationism.”
Rice thinks that today’s world is in a very dangerous moment due to the current “coordination between the great Asian powers that want to see American power expelled from their regions.”
This idea has also been expressed on Wall Street, where veterans like Dick Bove highlight the capacity of Russia and China, through the BRICS group, to convince other developing countries to abandon the dollar. Seeing these actions, the analyst believe that the era of the US dollar is almost over, mainly due to the role that China has been playing in world geopolitics.
Concerns have reached the European Union, leading the region’s authorities to “take note” of the bloc’s growth, and recognizing their interest in seek more weight in international institutionsuntil now dominated by the United States and Europe.
The number of countries that want to move away from the dollar is worrying
All these positions regarding the BRICS group are made in a context in which China and Russia seem increasingly willing to advance their plans to dethrone the global dominance of the US dollar and create a new Global Order.
An objective in which this year Brazil, India, and South Africa have also been involved through the BRICS group; and to whom this year 5 countries have joined more (Iran, Egypt, Ethiopia, Saudi Arabia and the United Arab Emirates).
The expansion of the BRICS, whose combined GDP has already exceeded that of their G7 counterparts, is one of the issues that will be discussed at the Summit annual meeting of the bloc to be held in Russia from October 22 to 24, where announcements are also expected on a new system for international payments.
The BRICS countries already surpass that of the G7, a trend that is expected to continue advancing in the coming years. Source: acornmc.co.uk.
As reported by CriptoNoticias, some 40 countries have expressed their intention to join the group. Although this year perhaps only Türkiye, Azerbaijan, Malaysia, Thailand and Kazakhstan can join.
This is an incorporation that gives more international weight to the organization and demonstrates the growth of the regional bloc. Such expansion will become more noticeable as many new members are added in the coming years, and the list of countries joining the so-called “crusade for de-dollarization” becomes longer.
That is precisely one of the concerns that was highlighted in Rice and Kempe’s speeches at the UN and that seems to be setting off some alarms in the West, especially when knowing the data presented in a report published by the international investment migration advisory firm Henley & Partners. In it, it is explained that there are many developing countries that they want to use their local currencies for trade and strengthen their economies.
For these nations “the US dollar is hindering their growth potential,” the study notes. That’s why the BRICS organization looks so attractive because it promotes de-dollarization. The study also indicates that the main argument of the candidates to enter the bloc is to protect their native economies. moving away from the dollar.
In this way, the number of countries that wish to participate in the international payments system developed by the BRICS and that will most likely be presented at the Summit increases.
This new system – integrated by BRICS Pay, the gold-backed stablecoin UNIT, the mBridge project with central bank digital currencies – is barely in gestation. But, in the meantime, the BRICS are promoting de-dollarization using their local currencies as a means of payment.
Russian President Vladimir Putin recently spoke on this topic, noting that Russia is already actively adopting the use of national currencies in trade with the BRICS countries and “our partners are very interested in it.”
During his speech at the Russian Energy Week forum in Moscow, the president pointed out that the participation of the ruble in the country’s foreign trade operations has tripled between 2021 and 2023. “Only in the first half of this year, it was 39.4%,” he said.
Putin also referred to how Russian oil and gas supplies to “friendly” countries contribute to ensuring economic stability and maintaining competitiveness in the global market. With his comments, he suggested that the international oil trade is moving towards decoupling from the US currency.
The participation of important oil countries in the BRICS thus points to the fall of the petrodollar. A situation that, although it may not achieve total de-dollarization, would diminish the global prominence of the dollar.
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
