BRICS gold stablecoin plan targets dollar dominance

Cryptocurrency analyst Max Keiser predicts BRICS nations will deploy a gold-backed stablecoin to counter U.S. dollar hegemony, particularly if Washington introduces a USD-pegged digital currency.

The strategy aims to leverage gold’s inflation-resistant properties while reducing reliance on the dollar.

Keiser, a longtime Bitcoin (CRYPTO:BTC) advocate and advisor to El Salvador’s government, outlined the scenario on social media.

“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,” he stated.

The proposed gold stablecoin would appeal to countries seeking alternatives to dollar-denominated instruments, Keiser argued.

He noted India’s existing de facto gold standard and suggested Muslim-majority nations might prefer gold over a USD-linked “riba-coin” due to Islamic finance principles prohibiting interest.

The idea of a BRICS gold-backed currency gained traction in 2023 but stalled amid geopolitical tensions.

Former U.S. President Donald Trump warned BRICS against creating a rival currency, threatening a 100% tariff regime if they pursued dollar alternatives for trade.

Economist Jim Rickards previously warned that a BRICS gold currency could destabilise the dollar, particularly if U.S. inflation and devaluation accelerate.

While the concept remains speculative, Keiser’s comments highlight ongoing debates about de-dollarisation and alternative reserve assets.

The proposal faces significant hurdles, including coordinating monetary policies among BRICS members and addressing technical challenges in digitising gold reserves.

However, Keiser’s analysis reflects broader concerns about the dollar’s role in global finance and the rise of multipolar economic alliances.

As central banks explore digital currencies, the interplay between gold, stablecoins, and geopolitical strategy will likely shape future monetary systems.

Whether BRICS can operationalise a gold stablecoin remains uncertain, but the discussion underscores shifting dynamics in international trade and currency markets.

Keiser’s emphasis on gold’s stability contrasts with the volatility of fiat currencies, though critics argue digitising physical gold reserves requires robust infrastructure and regulatory frameworks.

The scenario also raises questions about how such a system would interact with existing financial networks.

While no concrete steps toward a BRICS gold stablecoin have been announced, the concept aligns with efforts by emerging economies to diversify away from dollar dominance.

Analysts will monitor whether geopolitical tensions or economic incentives drive further exploration of alternative reserve assets.