#Binance
Ripple News: BRICS Planning a Gold-Backed Financial System with XRP?
Story Highlights
Rumors suggest BRICS nations are exploring a gold-backed system using XRP to challenge US dollar dominance.
The US dollar, SWIFT, and liquidity control currently give the West significant financial influence that BRICS seeks to overcome.
Russia and China are making moves like gold tokenization and reserve expansion.
A new theory in the cryptocurrency world suggests that BRICS nations may be quietly working towards a gold-backed global financial system powered by XRP, challenging the dominance of the US dollar. Here’s what you need to know about this bold and controversial theory.
The US Dollar’s Global Grip Over Finance
Right now, the United States holds enormous control over the global financial system. This influence is built on three main pillars: the US dollar, the SWIFT messaging system, and control over global liquidity.
SWIFT, which allows banks to securely communicate about financial transactions, plays a major role in maintaining this dominance. When the US excludes a country from SWIFT or freezes its dollar reserves, it can effectively block that nation from international trade.
This was seen in 2022, when several major Russian banks were cut off from SWIFT. In response, Russia began looking for alternative solutions – signaling the start of a broader shift among BRICS nations.
Why BRICS Wants Out of the Dollar System
Each BRICS nation has its own reasons for desiring an alternative to the US dollar system:
Russia is concerned about the US’s ability to freeze its reserves.
China fears losing financial autonomy, especially with its growing global presence.
India, Brazil, and South Africa also seek financial independence, with a particular focus on leveraging their financial systems.
Is XRP the Missing Piece?
BRICS nations require a fast, neutral, and censorship-resistant infrastructure to conduct cross-border transactions. In response to this need, there are rumors that BRICS is testing Ripple’s XRP Ledger.
