Robert Kiyosaki, best selling author of Rich Dad Poor Dad has said that he feels the new gold-backed BRICS currency will spell the beginning of the end for the US dollar. The BRICS nations comprise an economic bloc made up of Brazil, Russia, India, China, and South Africa.
Since the imposition of sanctions on member-state Russia over the war in Ukraine, it has been difficult for Moscow to settle cross-border trade obligations in dollars, complicating its trade relationships, and forcing it to find alternative means of settling its trade obligations without using dollars.
The situation with Russia has combined with the nervousness of other nations over their access to the Western financial system being shut to them for political reasons. That has led to a global push towards “de-dollarization,” which has seen nations begin settling trade obligations in local currencies, or currencies other than the dollar, such as the yuan or rupee.
As part of this initiative, rumors emerged that the BRICS nations were working on their own gold-backed currency for use in cross-border trade settlement.
Anticipation surrounding the currency surged after a report in Russian news outlet RT.com, which confirmed the reports, and said an official announcement on the new currency would be made during the leader’s summit, scheduled to be held August 22-24.
So far however no BRICS official has made a public statement on the new currency, and it is still not confirmed that it will be backed by gold.
On Tuesday, Kiyosaki tweeted that he predicted that the US dollar will die, as nations abandon the dollar as a reserve currency, sell off their reserves, and trillions of dollars suddenly flood onto the open markets. He believes the process will begin in August, following the official announcement of the BRICS currency at their summit.
He followed the prediction with his usual recommendation that investors should invest in gold, silver, and bitcoin, given the fact he said this would send inflation skyrocketing.
He had made a similar prediction in April, when he said due to the challenges being presented by the BRICS nations, “quadrillions of dollars” would flood back into the US, and that “the ramifications of that are possibly … hyperinflation.”
Kiyosaki has long been a proponent of gold, silver, and bitcoin. He has previously pointed out that all three investments are the best places to store value in “unstable times.”
In his tweet Tuesday, he also predicted that bitcoin would hit $120,000 next year. That mirrors a revised forecast by Standard Chartered.
On Monday the banking titan said that it saw bitcoin hitting $50,000 this year, and $124,000 next year.
For his part Kiyosaki has predicted that by 2025, bitcoin will hit $500,000, gold will reach $5,000, and silver will hit $500.
It is worth noting that although many are expecting the launch of a new BRICS currency in August, the vice-president of the New Development Bank, also referred to as the BRICS Bank, has outlined more modest goals, stating that the bank’s creation of a new currency that could compete with the dollar was a medium to long term ambition.
He said, “No one is suggesting right now that BRICS will form an alternate currency,” and that its use would initially be primarily for settlements between members.
