BRICS nations are exploring a gold-backed currency, but experts warn deep structural and geopolitical risks could derail its launch.
The BRICS bloc—Brazil, Russia, India, China, and South Africa—is moving closer to a proposed gold-backed currency, aimed at reducing reliance on the U.S. dollar. While the idea promises stability amid fiat currency volatility, experts warn the risks may outweigh the benefits, especially ahead of a potential 2026 launch.
Key concerns include uneven gold reserves, with China and Russia holding far more than other members, as well as political tensions and economic imbalances across the bloc. Coordinating monetary policy among five vastly different economies also presents a major challenge.
Market watchers note that failure or delays could trigger volatility in gold, forex, and crypto markets, while success could reshape global trade and reserve strategies. Analysts remain skeptical, with some estimating less than a 30% chance of full implementation by 2027.
For investors, the proposal underscores the importance of diversification and close monitoring of geopolitical and monetary developments.
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