Vladimir Putin criticizes the US dollar as a system based on trust with no backing
In a recent Sputnik video, Russian President Vladimir Putin lambasted the United States for moving away from the gold standard. Putin criticized the U.S. for abandoning the gold equivalent and relying solely on trust in the U.S. economy to back the dollar.
In a translation shared by Jane Adams on X, Putin was quoted saying, “The United States decided to step away from the gold equivalent. There is no other promise, no other collateral rather than trust towards the U.S. economy.”
The dominance of the U.S. dollar is being challenged by the BRICS nations (Brazil, Russia, India, China, and South Africa), who are working towards creating an alternative payment platform that reduces reliance on the dollar. This initiative, born at the Johannesburg summit in 2023, aims to facilitate 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, making the U.S. dollar a fiat currency based on trust rather than a tangible asset.
Russia, facing sanctions from the U.S. and its allies, is eager to move away from the dollar. President Putin highlighted that the ruble now accounts for 40% of Russia’s import and export transactions, with over 90% of settlements between Russia and China conducted in their national currencies.
Assets like gold, silver, and cryptocurrencies such as Bitcoin, Monero, Litecoin, Bitcoin Cash, MultiversX, and Nano have been suggested as alternatives to fiat currencies like the U.S. dollar. These assets are decentralized and are often viewed as a hedge against inflation and economic instability.
Despite the push for de-dollarization, analysts believe that replacing the dollar is a complex task due to its entrenched position in the global financial system. Some experts argue that American dysfunction poses a greater threat to the dollar’s supremacy than foreign efforts.
As the BRICS nations work towards establishing an alternative payment platform, the U.S. must address internal challenges to maintain the dollar’s global dominance. The outcome of upcoming BRICS meetings and the U.S. response will be pivotal in shaping the future of the global financial landscape.
In a recent post on X, Gold Telegraph discussed the crumbling foundation of the unipolar world and the rise of a multipolar global order, leaving the role of the U.S. dollar uncertain in this new world.
