The US dollar is the de facto global currency for all trade and trade agreements around the world. However, a handful of developing countries, including the BRICS, are feeling the pressure of unchecked US dollar debt. Debt has risen above $34.2 trillion and central banks are finding it risky to hold the USD in reserves.
Also read: BRICS: China's gold buying spree will put an end to the US dollar?
A market crash will not only plunge US markets, but hoarding the dollar in reserves will have dire consequences for the BRICS. To protect their own economies and currencies, developing countries want to end dependence on the US dollar for their trade.
BRICS: Leading economist warns US dollar 'deteriorating'
The author of the best-selling financial self-help book Rich Dad Poor Day, Robert Kiyosaki warned that the US dollar “will get worse”. He explained that mounting debt and printing trillions of dollars could be the main reason for the decline. This is the first reason why the BRICS alliance wants to stay away from the US dollar.
Also read: BRICS: India and Nigeria complete major partnership, ditching US dollar
Kiyosaki explained that the best investments that can keep money safe are gold, silver and Bitcoin. He emphasized that the US dollar will eventually destroy itself due to debt, but commodity markets will always survive. Read here to know how many sectors in the US will be affected if BRICS dumps the dollar for trade.
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“It's a reason to buy gold, silver, Bitcoin, all because our currency is now ruined. It will get worse as our debt continues to rise. The reason we buy gold, silver and Bitcoin is the same reason. There's no other way, just tell me how many ounces you have. I buy gold, silver, Bitcoin, and I just bought some Ethereum, simply for the same reason: our money is fake,” he said.