China & Russia Are Just a Small Step Toward a New Gold-Backed Digital Currency that Completely Bypasses the U.S. Dollar Payments System

• China & Russia Are Just a Small Step Toward a New Gold-Backed Digital Currency that Completely Bypasses the U.S. Dollar Payments System
  by Jim Rickards, https://dailyreckoning.com/
  …. Today, I want to talk a little more about how gold and blockchain technology could lead the world away from the dollar-based system… Despite everything you may hear in the mainstream media, gold is as relevant as ever.
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  Russia and China, for example, have been accumulating thousands of tons of physical gold bullion for the last 10 years. That’s not news, of course. What is news is that both countries are starting to make moves toward the end game of a gold-backed currency that completely bypasses the U.S. dollar payments system. These moves are both geopolitical and monetary.
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  In fact, they track the gold-based attack on the U.S. dollar that I devised for the Pentagon in their first-ever financial war game in 2009. That financial war game is described in detail in my 2011 book, Currency Wars. It looks like the Russians and Chinese read my book!
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  According to Russian government officials attending a recent monetary conference in Moscow, Russia, China and their BRICS allies are moving toward their own gold trading system (bypassing London and New York).
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  From there it’s a small step toward a new gold-backed digital currency using distributed ledger technology and military-grade encryption. Distributed ledger technology is another term for the blockchain technology I discussed above. But unlike cryptocurrencies like bitcoin, this digital system is backed by gold.
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  Once that system is up and running, the BRICS can trade and settle oil, commodities, weapons, manufactured goods and the overall balance of payments without using dollars or Western financial intermediaries at all. And from there, a global loss of confidence in the dollar is not far behind. Do you think bitcoin will win the most in this scenario?
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  It won’t. The big winner in all of this will be gold.

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