Published by
Zoe Walters
The US Dollar has been the global currency used for trade between multiple countries for many years. The currency had been relied upon irrespective of the currency being backed solely upon the creditworthiness of the United States and not backed by physical commodities such as gold and silver. However, in recent years, as the United States’s creditworthiness declined rapidly due to the country being unable to reduce its national debt and actually increasing its level of indebtedness to foreign countries including China; many countries are increasingly skeptical and weary of the US Dollar being used as the sole global currency.
Unfortunately for the United States, many people believe that the US has violated the Charter on many occasions and has attempted to weaponize its currency by imposing financial and economic sanctions upon different countries. Additionally, there have been reports over the years that the US, under the current administration, has wanted and potentially attempted to seize the assets of numerous countries including Afghanistan.
The BRICS currency, created by Brazil, Russia, India, China and South Africa, utilizes blockchain technology and the currency is currently backed by physical commodities such as gold and silver.
Blockchain technology has been evolving at an exponential rate, especially due to the rising popularity of cryptocurrency, so it is no surprise that a currency would inevitably be developed and ultimately used by different countries for trade. It does seem inevitable that a block chain currency would supersede and replace a currency that utilizes Swift on the Legend system. One could crudely compare blockchain currency and a swift based system with being the VHS and Betamax respectively or akin to Blu-ray and HD DVD respectively. Whilst both alternatives vie for dominance, only one would be successful and as history has shown us, technological advancements tend to be victorious in time.
Currently, there are more than 40 countries of the 195 countries currently in existence that are contemplating becoming members of BRICS and share the sentiment that a new global currency be used that is not the US Dollar and is not a western country-based currency. It is evident from the current members of BRICS and those countries not invited, such as France, that there is going to be a financial war for dominance and it does not seem likely that an outdated, archaic Legend based system, such as Swift, could compete and remain the undisputed global currency. Conversely, it is not guaranteed that the BRICS currency would become triumphant; however, it is clear that a blockchain currency is more likely to succeed as it would be sufficiently advanced to adapt with how many countries, and technology in general, continues to advance and evolve.
In conclusion, should the BRICS currency succeed in replacing the US Dollar as the global currency, it could invariably cause the United States to potentially become stabilized, which would be catastrophic for the economy and future of the United States. Furthermore, should the BRICS currency succeed, what would prevent a larger nation from imposing similar financial and economic sanctions upon fellow member countries?
There is a distinct possibility that the replacement of the US Dollar for the BRICS currency would essentially be a like-for-like replacement in every aspect, both positively and negatively. Should the replacement prevail, would there be a potential coup amongst the BRICS countries to have one specific BRICS country as a superior global leader, and if there is an internal struggle for power and dominance; could the internal conflict potentially cause a third world war?
