Lyn Alden, that sharp-as-a-tack investment strategist, recently stirred the pot. She threw cold water on the sizzling idea of Brazil, Russia, India, China, and South Africa (a.k.a the BRICS gang) teaming up for their very own currency. Sounds epic, right? Well, she’s betting it won’t dethrone Uncle Sam’s dollar anytime soon.
Chewing the fat with Cointelegraph, right before the big BRICS shindig in South Africa, Lyn laid it out straight. She reckoned that pulling off a gold-backed currency for these big five? Well, that’s akin to herding cats. The odds? Slim to none.
Remember when Putin, Russia’s head honcho, blabbed about the BRICS bunch cooking up a rival for the U.S. dollar? Yeah, the one supposedly wrapped in gold. But here’s the kicker, according to Alden: It’s kinda like putting lipstick on a pig. “Banking with gold in your pocket is short-lived. I mean, money grows on trees, but gold doesn’t!” she quipped.
But wait, there’s a twist. Instead of this grand gold-backed idea, Alden’s crystal ball sees these nations playing it cool. They might just stick to using their own moolah for trading, especially the mighty Chinese yuan.
The BRICS hold G7 currencies as their reserves, and not the other way around. And yet, the BRICS just flipped the G7 in economic size.
— Lyn Alden (@LynAldenContact) April 11, 2023
Reserve practices don’t change overnight, but this is a very different environment than 10+ years ago. https://t.co/khoH1Cbvp8
And guess what? Lyn’s not alone in her naysaying. Jim O’Neil, a hotshot from Goldman Sachs, had a good chuckle over it, labeling the idea “ridiculous”. He scoffed, “A BRICS bank? How on earth? It’s like trying to nail jelly to a wall!”
Heck, even India’s bigwig, Vinay Mohan Kwatra, didn’t sound too keen. On August 21st, he hinted that the BRICS brigade seems to be leaning more towards trading with their own national dough.
As for what’s brewing in the upcoming BRICS meet-up in South Africa from Aug. 22-24? Well, keep your ears peeled for talks about this common currency business, the BRICS Bank, global trading, and the ever-touchy Russia-Ukraine saga.
Now, here’s a zinger for ya. Lyn thinks that if the U.S. dollar takes a back seat, Bitcoin could get a bit queasy. In her words, “A dip in the love for U.S. Treasuries might give Bitcoin a bit of a roller coaster ride.” And if the U.S. has to play savior to sinking banks? Bitcoin’s price might just shoot up like a firework!
In the grand scheme of things, if the Fed has to toss a life jacket to the Treasury market, Lyn bets it would be Bitcoin’s lucky day. Remember when Bitcoin went wild after the Fed swooped in back in March 2023? Lyn surely does. And for those scratching their heads, it’s when a bank’s coffers run dry, and the central bank has to jump in with a cash infusion. Drama, drama, drama!
Well, folks, there you have it. In the world of gold, dollars, and digital coins, the plot keeps thickening. Stay tuned!
