A new theory in the cryptocurrency world suggests that Brics-countries may work quietly on a gold spirit worldwide financial system driven by XRP, so that the dominance of the US dollar is challenged. This is what you need to know about this bold and controversial theory.
How the West controls the global financial system
The US currently has an unparalleled control over the global financial system, with the US dollar in the center. Three tools give the West considerable influence: the US dollar, the Swift system and the liquidity control.
The Swift network, with which banks can safely communicate about financial transactions, is a crucial tool in maintaining this dominance. By excluding countries from Swift or freezing their dollar assets, the US can impose financial sanctions and block international trade.
In 2022, various prominent Russian banks were excluded from Swift, forcing Russia to look for alternatives. As one of the most important members of BRICS, Russia wants to separate itself from this system -oriented system.
Why Brics wants to leave the US Dollar
Each Brics -Nation has its own reasons to desire an alternative for the American dollar system:
- Russia worries about the power of the US to freeze its reserves.
- China Fear of losing financial autonomy, especially with its growing global presence.
- India” BrazilAnd South Africa Also look for financial independence, with a special focus on utilizing their financial systems.
The need for an alternative financial system
BRICS countries require a fast, neutral and censorship-resistant infrastructure to carry out cross-border transactions. In response to this need, there are rumors that Brics’s Ripple test the XRP whides.
XRP can become the bridge to transfer money quickly and safely, without making a new token. Instead, it would help to arrange international trade, supported by assets such as gold.
How XRP could feed a gold -supported system
In contrast to Bitcoin, who is volatile, or Ethereum, which is confronted, XRP offers a fast and cost -effective solution, specially built for institutional use. According to the theory, BRICS could create their own digital currency supported by gold. XRP would serve as the bridge to arrange quickly, which reduces the dependence on the US dollar and the Swift system.
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Early signs of the shift
Russia and China are already making movements that support this theory:
- Russia Works on token his gold reserves.
- China expand his gold reserves to support a future financial system.
- Ripple Improves compliance with regulations and drives global acceptance through programs and partnerships.
According to a post on x by PompiusThese actions point to the start of a massive transformation, one that can reform global financing as we know it.
The future of BRICS and XRP: a new era of financial independence?
This theory points to an emerging shift that could drastically reduce dependence on the worldwide financial system of the US dollar. With XRP possibly centrally in this change, Brics -countries can quietly position itself for a new, decentralized financial landscape.
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FAQs
XRP could act as a neutral, fast bridge for arranging cross -border transactions in a gold -supported financial system without trusting the dollar.
The speed, low costs and decentralization of XRP make it a viable alternative to immediate cross -border payments in a new system.
Credit : coinpedia.org
