{"id":20284,"date":"2023-04-27T00:06:21","date_gmt":"2023-04-27T00:06:21","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/brics-currency-will-erode-us-dollars-dominance-former-white-house-economist-warns-economics-bitcoin-news\/"},"modified":"2023-04-27T00:06:21","modified_gmt":"2023-04-27T00:06:21","slug":"brics-currency-will-erode-us-dollars-dominance-former-white-house-economist-warns-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/brics-currency-will-erode-us-dollars-dominance-former-white-house-economist-warns-economics-bitcoin-news\/","title":{"rendered":"BRICS Currency Will Erode US Dollar’s Dominance, Former White House Economist Warns \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Former White House economist Joseph Sullivan has warned that a BRICS currency would erode the U.S. dollar\u2019s dominance. If member nations use only a common BRICS currency for international trade, \u201cthey would remove an impediment that now thwarts their efforts to escape dollar hegemony,\u201d he described.<\/strong><\/p>\n

Former White House Economic Advisor on BRICS Currency and U.S. Dollar\u2019s Reserve Currency Status<\/h2>\n

A former White House economic advisor, Joseph Sullivan, discussed de-dollarization and the potential impacts of a BRICS currency<\/a> on the USD in an opinion piece published by Foreign Policy Monday. The BRICS nations are Brazil, Russia, India, China, and South Africa.<\/p>\n

Sullivan was a special advisor and staff economist at the White House Council of Economic Advisers during the Trump administration. He is currently a senior advisor at the Lindsey Group, an economic advisory firm. Referring to the hypothetical BRICS currency as \u201cthe bric,\u201d he warned:<\/p>\n

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If the BRICS used only the bric for international trade, they would remove an impediment that now thwarts their efforts to escape dollar hegemony.<\/p>\n<\/blockquote>\n

\u201cThose efforts now often take the form of bilateral agreements to denominate trade in non-dollar currencies, like the yuan, now the main currency of trade between China and Russia,\u201d he continued.<\/p>\n

The former White House economic advisor believes that it is \u201crealistic to imagine the BRICS using only the bric for trade.\u201d<\/p>\n

He added that with the creation of a BRICS currency:<\/p>\n

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The BRICS would also be poised to achieve a level of self-sufficiency in international trade that has eluded the world\u2019s other currency unions.<\/p>\n<\/blockquote>\n

\u201cBecause a BRICS currency union \u2014 unlike any before it \u2014 would not be among countries united by shared territorial borders, its members would likely be able to produce a wider range of goods than any existing monetary union,\u201d he explained.<\/p>\n

However, Sullivan expects the BRICS currency to \u201craise a litany of thorny practical concerns.\u201d<\/p>\n

He detailed: \u201cUsed primarily for international trade rather than domestic circulation within any one country, the bric would complicate the job of national central bankers in BRICS countries. Creating a supranational central bank like the European Central Bank to manage the bric would also take work. These are challenges\u2014but not necessarily insurmountable ones.\u201d<\/p>\n

The economist proceeded to discuss the BRICS currency displacing the U.S. dollar as a global reserve currency among member countries. He noted: \u201cThe dollar\u2019s global role has always been a double-edged sword for the United States. Though it does allow Washington to add sanctions to its foreign-policy toolkit, by raising the price of the U.S. dollar, it raises the cost of American goods and services to the rest of the world, decreasing exports and costing the United States jobs.\u201d<\/p>\n

In conclusion, while clarifying that he believes \u201cthe dollar\u2019s reign isn\u2019t likely to end overnight,\u201d the former White House advisor cautioned:<\/p>\n

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A bric would begin the slow erosion of its dominance.<\/p>\n<\/blockquote>\n

A growing number of people have warned that the creation of a BRICS currency would threaten<\/a> the USD\u2019s dominance. White House economist Jared Bernstein said during a hearing on his nomination to be chairman of the Council of Economic Advisers that China wants to weaken<\/a> the U.S. dollar\u2019s reserve currency status.<\/p>\n

Do you agree with the former White House economist about the potential impacts of a BRICS currency on the U.S. dollar? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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