Developing countries are looking to topple the US dollar’s dominance and weaken its prospects in the currency markets. The fight to influence and control the global financial order gained steam after the US imposed sanctions on Russia in 2022 for invading Ukraine. BRICS is considering various methods to pull the US dollar down from its dominant position, including launching a new currency and a gold-backed stablecoin.
Also Read: India Conveys to BRICS: ‘We Will Not Ditch the US Dollar’
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The alliance kick-started the de-dollarization agenda and is convincing other countries to use local currencies for trade. Max Keiser, the current advisor to the Bukele administration wrote on X that BRICS might soon launch a gold-backed stablecoin to take on the US dollar.
BRICS Gold-Backed Stablecoin Vs the US Dollar
The idea comes after reports of Trump planning to launch a US dollar-backed stablecoin. Therefore, BRICS wants to leverage the gold it holds in its reserves and launch a stablecoin backed by it. “The BRICS, principally Russia, China, and India will counter any attempt by the US to introduce a hegemonic, USD-backed stablecoin—with a gold-backed stablecoin.”
Also Read: BRICS: New Country Plans to Reduce 25% of Trade Without US Dollar
He added that developing countries would opt for gold-backed stablecoin from BRICS as the US dollar-backed stablecoin is risky. Gold is considered safe while the US dollar comes with debt and inflation. “India already runs on a defacto gold standard and Sharia law in Muslim countries would dictate gold over a USD riba-coin as well,” he assessed.
The BRICS, principally Russia, China & India will counter any attempt by the US, to introduce a hegemonic, USD-backed stablecoin — with a Gold-backed stablecoin.
The majority of the global market will favor a Gold-backed coin since it’s inflation-proof (unlike the USD) and… https://t.co/6s9F3j44xR
— Max Keiser (@maxkeiser) March 23, 2025
Also Read: BRICS: Analyst Reveals If the US Dollar Can Maintain Its Dominance
Economist Jim Rickards was the first to mention the BRICS gold-backed stablecoin vs the US dollar-backed stablecoin in 2023. He wrote that a gold-backed stablecoin would be more powerful and has the capacity to destroy the US dollar. It could be the best alternative as the demand for the precious metal never dips anywhere in the world.
