However, rapid recent geopolitical developments suggest that gold is not out of date and could be developed by China and Russia.A brand-new currency backed by gold could emerge.I was quite surprised by how quickly the United States weaponized the dollar and banking system following Putin's invasion of Ukraine.The assets of the Russian central bank were taken away for $300 billion, or about one fifth of the country's annual GDP, and Russia was barred from the international payments system SWIFT.In retaliation, Putin demanded roubles in exchange for Russian gas.The currency wars have officially started.
Russia needs a global currency with which it can trade if it wants to avoid isolation on the international stage."The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out," Putin stated just last month.
It would appear that Sergey Glazyev, a former adviser to the Kremlin who is now the minister in charge of integration and macroeconomics for the Eurasia Economic Union (EAEU) is in charge of a new money system for China and the EAEU.A basket of brand-new foreign currencies and natural resources will serve as the foundation for the global new monetary system, which will be based on a digital currency.

"All countries that are interested will be able to join.The GDP of each nation, its share of international trade, and the size of its population and territory could all have an impact on the weight of each currency in the basket.An index of the prices of the major exchange-traded commodities could also be included in the basket:hydrocarbons, grains, sugar, gold and other precious metals, key industrial metals, water, and other natural resources.
Even though the St. Petersburg International Economic Forum, also known as the "Russian Davos," was held in June, significant representatives from numerous Arab nations, China, India, Iran, and Turkey attended.A new, non-Western international currency and trade between non-Western powers in a world under US dollar control were recurring themes.
In the meantime, there is the Shanghai Cooperation Organization (SCO), whose most recent summit took place last week in Uzbekistan's Samarkand.It covers 40% of the world's population and more than 30% of the world's GDP, making it the largest regional organization in terms of population and geographic scope.China, Russia, India, Pakistan, Iran—which recently joined the group—Kyrgyzstan, Tajikistan, Kazakhstan, and Uzbekistan are its members.Additionally, Turkey's president, Recep Tayyip Erdogan, has indicated that he is considering joining.These nations are not exactly pro-Western.
Both China's Xi Jinping and Russian President Vladimir Putin called for changing the international system.a number of ongoing infrastructure projects, including a China-Central Asia natural gas pipeline, a trans-Afghan railway that will connect Uzbekistan and Pakistan, and a China-Kazakhstan-Uzbekistan railway.China, whose exports depend on Europe and the United States, is clearly interested in expanding its market share.
Are these nations really going to be interested in doing business in dollars?You can bet your bottom dollar that many of the brightest minds in China and Eurasia are planning a different system.However, it's much simpler to say than to do.