Ben Armstrong’s insights, compiled by the CoinSpeech team from his recent detailed analysis, provide a compelling look into the unfolding global financial landscape. You can watch Ben Armstrong’s new video below.
The Inevitable Decline of the US Dollar
According to Ben Armstrong, “the chances of a large magnitude fall of the US Dollar on the global scale remain highly unlikely in the near future” but it’s “100% going to happen.” The only uncertainty is the timeline, be it 5, 10, or 20 years.
The Rise of BRICS and Its Banking System
In 2014, BRICS nations launched a new development bank, essentially as a counter to the World Bank and the International Monetary Fund. Armstrong points out, “those Banking and funding mechanisms are not only attractive to BRICS nations but they’re open to other developing and emerging economies.”
Increasing BRICS Membership
Countries like Egypt, the UAE, and even Saudi Arabia have shown interest in or become part of the BRICS banking system. Armstrong mentions, “over 40, I think now it’s 50 countries,” have either joined or shown interest in joining.
Potential for a BRICS Currency
“One Russian government official said a few weeks ago that BRICS member nations are possibly working towards creating a new form of currency,” Armstrong explains. However, Armstrong believes “BRICS Pay is already coming”; it’s not a hypothetical scenario anymore. The idea was supported by Vladimir Putin’s long-standing interest in blockchain and crypto technologies.
The Impact of Global Sanctions
Armstrong argues that US-led sanctions are inadvertently accelerating the shift towards BRICS-led financial systems. “The sanctions placed on Russia… accelerated this,” he states. With sanctions making traditional trading routes and funds inaccessible, countries like Russia and China are turning toward each other, leading to a tighter and more self-reliant BRICS network.
Ramifications for Global Trade
“Watch what’s happening in the Middle East,” says Armstrong, pointing to the strategic implications of trade routes and energy supplies. The potential for BRICS to disrupt global trade, particularly with initiatives like BRICS Pay, is enormous.
Sanctions and Their Unintended Effects
“Sanctions are not working,” Armstrong emphasizes, arguing that these measures are causing countries to turn internally and support each other more profoundly. Russia, heavily sanctioned, has found an outlet and a customer in China for its metals, which had been cut off from Western markets.