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.
Right now, the United States holds enormous control over the global financial system. This influence is built on three main pillars: the US dollar, the SWIFT messaging system, and control over global liquidity.
SWIFT, which allows banks to securely communicate about financial transactions, plays a major role in maintaining this dominance. When the US excludes a country from SWIFT or freezes its dollar reserves, it can effectively block that nation from international trade.
This was seen in 2022, when several major Russian banks were cut off from SWIFT. In response, Russia began looking for alternative solutions – signaling the start of a broader shift among BRICS nations.
Each BRICS nation has its own reasons for desiring an alternative to the US dollar 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.
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.
Russia and China are already making moves that support this theory:
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.
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.
XRP could act as a neutral, fast bridge for settling cross-border trades in a gold-backed financial system without relying on the dollar.
XRP’s speed, low cost, and decentralization make it a viable SWIFT alternative for instant cross-border payments in a new system.
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