Key Points
- Robert Kiyosaki warns that a BRICS gold-backed crypto could severely impact the U.S. dollar.
- Despite discussions, BRICS nations are yet to reach a consensus on a common currency.
Robert Kiyosaki, the author of “Rich Dad, Poor Dad,” has highlighted the potential drastic effects of a BRICS gold-backed cryptocurrency on the U.S. dollar.
The BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, have been exploring alternatives to the U.S. dollar and Euros for cross-border trades as part of their de-dollarization plans.
De-Dollarization Plans
These alternatives include digital technology, blockchain, and even a gold-backed currency. Kiyosaki believes that if BRICS were to implement a gold-backed crypto, it could lead to the crash of the U.S. dollar.
He stated, “If BRICS gold crypto happens trillions in fake money, fiat US dollars will come rushing back to home to America causing hyperinflation in America, ultimately destroying US dollar.”
Historically, U.S. dollars have been used for almost all cross-border transactions. However, a recent report from the International Monetary Fund (IMF) has shown a decline in the dominance of the U.S. dollar, dropping from 80% in 2010 to an estimated 50% in 2023.
Shift in Currency Dominance
On the other hand, China’s Renminbi (RMB), a member of BRICS, has increased from zero to 50% over the same period. If a BRICS gold-backed crypto were to follow the RMB’s trajectory, it could further weaken U.S. dominance in cross-border payments.
This could lead to BRICS nations sending their USD reserves back to the U.S., and according to Kiyosaki, such an increase in supply could result in “hyperinflation in America.” As a protective measure, Kiyosaki advises investors to buy real gold, silver, and Bitcoin.
The possibility of an official BRICS gold-backed crypto remains uncertain. In August 2023, India’s foreign secretary, Vinay Mohan Kwatra, emphasized that BRICS members prefer trading with their own currencies rather than a common one.
While Russia has shown interest in a common currency as of March 2024, with a focus on blockchain and digital technology, a consensus among all BRICS nations is yet to be reached. More information may be revealed at the upcoming BRICS summit in Russia, scheduled for October 2024.
