Vladimir Putin criticizes the US dollar as a faithbased system with no backing

Russian President Vladimir Putin recently criticized the United States for moving away from the gold standard in a video released by Sputnik. He pointed out that the U.S. dollar is now a trust-based currency with no tangible backing. Putin’s statement, as translated by Jane Adams on X, highlighted the lack of promise or collateral other than trust in the U.S. economy.

The BRICS countries (Brazil, Russia, India, China, and South Africa) are actively working on developing an alternative payment platform to reduce reliance on the U.S. dollar. This initiative, born out of the Johannesburg summit in 2023, aims to promote trade and lending among BRICS nations using their own currencies instead of the dollar.

The U.S. dollar has been the world’s reserve currency since the Bretton Woods system was established in 1944. However, President Richard Nixon ended the gold standard in 1971, turning the dollar into a fiat currency backed by trust in the U.S. economy. Facing significant sanctions, Russia is looking to move away from the dollar, with 40% of its import and export transactions now conducted in rubles.

Assets like gold, silver, and cryptocurrencies such as Bitcoin, Monero, Litecoin, Bitcoin Cash, MultiversX, and Nano have been proposed as alternatives to the U.S. dollar. These assets are not controlled by any single government or central bank and are seen as a hedge against inflation and economic instability.

While efforts to de-dollarize are gaining momentum, analysts suggest that replacing the dollar is a complex task due to its entrenched position in the global financial system. Some experts believe that American dysfunction poses a greater threat to the dollar’s supremacy than foreign efforts.

As the BRICS nations work on establishing an alternative payment platform, the U.S. must address its internal challenges to maintain the dollar’s global dominance. The outcome of upcoming BRICS meetings and the U.S. response will play a crucial role in shaping the future of the global financial landscape. In a recent post on X, Gold Telegraph discussed how the era of a unipolar world is giving way to a multipolar global order, leaving the role of the U.S. dollar in this new world uncertain.