Ripple News: BRICS Planning a Gold-Backed Financial System with XRP?

The post Ripple News: BRICS Planning a Gold-Backed Financial System with XRP? appeared first on Coinpedia Fintech News

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.

How the West Controls the Global Financial System

The US currently holds unparalleled control over the global financial system, with the US dollar at the center. Three tools give the West significant influence: the US Dollar, the SWIFT system, and liquidity control.

The SWIFT network, which allows banks to communicate securely 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, several prominent Russian banks were excluded from SWIFT, forcing Russia to seek alternatives. As one of BRICS’ key members, Russia is looking to break free from this US-centric system.

Why BRICS Wants to Move Away from the US Dollar

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.
  

The Need for an Alternative Financial System

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.

XRP could become the bridge for transferring money quickly and securely, with no need to create a new token. Instead, it would help settle international trade backed by assets like gold.

How XRP Could Power a Gold-Backed System

Unlike Bitcoin, which is volatile, or Ethereum, which faces congestion, XRP offers a fast and cost-effective solution, built specifically for institutional use. According to the theory, BRICS could create their own digital currency backed by gold. XRP would serve as the bridge to settle trades quickly, reducing reliance on the US dollar and the SWIFT system.

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Early Signs of the Shift

Russia and China are already making moves that support this theory:

• Russia is working on tokenizing its gold reserves.
  
• China is expanding its gold reserves to back a future financial system.
  
• Ripple is enhancing its regulatory compliance and pushing global adoption through programs and partnerships.
  

According to a post on X by Pumpius, these actions signal the beginning of a massive transformation, one that could reshape global finance 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 the global financial system’s dependence on the US dollar. With XRP potentially at the center of this change, BRICS nations may be quietly positioning themselves for a new, decentralized financial landscape.