ENCOURAGING ANGELS: Crypto Failures and De-Dollarization Bring Forth a New World Reserve Currency Where Gold Will be King

By Stan Szymanski

Two months ago I penned an article entitled ‘Crypto Conglomerate Digital Currency Group (DCG) is at the Epicenter of the Cryptocurrency Earthquake’ to outline the risks to crypto and specifically why DCG is one of the focal points of the trouble.

Crypto giant Genesis Trading, who is owned by DCG, filed for bankruptcy yesterday after suffering crippling loses in the aftermath of the FTX debacle. Genesis is now working toward a deal with over 100,000 creditors (victims) who were owed money following FTX’s failure inside the parameters of Chapter 11.

Now in light of the Genesis situation its parent Digital Currency Group is considering bankruptcy itself according to The Daily Mail:

…’The company – which is headed by Silbert – had previously warned in that it may need to file for bankruptcy if it fails to raise the cash necessary to appease creditors.’…’A Genesis bankruptcy would come as a significant blow for Silbert’s crypto group, a venture capital firm that currently encompasses much of the digital currency market…The cryptocurrency’ firm’s collapse would also trigger a repayment of an outstanding $350million left from a $600 million loan to the company from Chelsea FC owner Todd Boehly’s investment group Eldridge, which backed Digital Currency Group through senior secured debt in November 2021. Those familiar with the firm’s financial situation have said that according to the agreement reached by the two parties, the remaining amount from the loan would be due immediately if any of its subsidiaries – including Genesis ever underperforms.’…

DCG certainly is at the epicenter of the cryptocurrency earthquake. According to Genevieve Roch-Decter (via her daily email of 1/19/23 https://gritcap.io/) DGC has recently laid off 30% of its workforce and is also exploring sale of its media company CoinDesk. Things are coming apart at the seams for DCG.

Ms. Roch-Decter also pointed out in her communication that the Russian founder of a little known crypto exchange, Bizlato, has been arrested in a $700 Million dollar money laundering scheme. This theme of fraud and money laundering is now a recurring motif as the truth about these exchanges is revealed.

While the implosion of crypto is continuing to be exposed through money laundering and bankruptcy, the US Dollar (and by default, the United States) has clearly lost its stranglehold on world currency leadership.

In ‘Saudi Arabia Says Open to Settling Trade in Other Currencies’ Bloomberg (via Yahoo) reports:

…’Saudi Arabia is open to discussions about trade in currencies other than the US dollar, according to the kingdom’s finance minister…“There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal,” Mohammed Al-Jadaan told Bloomberg TV on Tuesday in an interview in Davos…The kingdom is a pillar (of) a petrodollar system established in the 1970s that relies on pricing crude exports in the US currency...During that trip Xi said that China would make efforts to buy more oil from the Middle East and also wanted to settle that trade in the yuan (emphasis added)’…

This trade of oil in OTD (‘other than Dollar’) had already been happening. With the outright reporting that Xi has made it a primary ambition to trade oil in Yuan-this is an outright, public slap in the face for the United States. Furthermore, it is the overture to overturning the dominance of the US dollar as the currency that anyone who purchases oil must use to transact to acquire the ‘black gold’. Whatever currency that is used to transact in the oil market will be the currency (or currencies) that will enjoy the preeminence in world markets just like the US Dollar enjoyed for the past 50 years.

So the current failures in crypto and the waning of the Dollar (and the IMF’s SDR’s) on the world stage are the precursors to the advent of a new competing world reserve currency.

The BRICS nations (Brazil, Russia, India, China and South Africa and others) have announced plans to create a new world reserve currency to compete against the Dollar and to provide a much more fair playing field for smaller nation states. The BRICS have now had 14 annual summits, so this has been in the works for quite a while.

(Photo courtesy BRICS/fintechs.fi)

From ‘BRICS Nations Plan to Create a New International Reserve Currency‘:

…“The matter of creating the international reserve currency based on the basket of currencies of our countries is under review,” Putin said at the time. “We are ready to openly work with all fair partners,” he added. Additionally, Turkey, Egypt, and Saudi Arabia are considering joining the BRICS group. Analysts believe the BRICS move to create a reserve currency is an attempt to undermine the U.S. dollar and the IMF’s SDRs.’…

So the BRICS are reviewing a new world reserve currency based on a market basket of currencies. If there were no additional considerations this would just be fiat backing fiat. But with the approach of this new world reserve medium of exchange we have seen the increasing interest in another monetary asset-Gold.

It is interesting to note that:

…’The strengthening of the BRICS nations has been going on well before the conflict in Ukraine began. For instance, in 2014, Russia developed the System for Transfer of Financial Messages (SPFS), and later the Mir payment system was launched. That same year, in response to the annexation of Crimea, Russia started to stockpile gold in vast amounts. China has been hoarding massive amounts of gold as well, as both countries hiked their gold reserve purchases a great deal a few years before the war.‘…(fintechs.fi)

In general, central banks around the world have been on a tear in their gold purchases since the 2008 financial crisis. They saw that depending on a fiat system with the US Dollar in control was not a structure that they wanted to be ruled by. In the third quarter of 2022 the central banks bought 400 tons of the yellow metal.

After the inception of the war in the Ukraine, the United States imposed sanctions on Russia. The value of the Ruble promptly fell. But then Mr. Putin did something interesting when Russia linked the Ruble to Gold. In doing so, he established a floor under the Ruble since gold trades in dollars. The ruble went on to promptly appreciate against the dollar.

When the Federal Reserve Bank of the United States went on an interest rate hiking spree in 2022, it devalued many of the currencies around the world:

…’The strengthening US dollar is decimating world currencies, as countries are forced to either increase rates or devalue the currencies.’…(China Briefing)

…’Countries with debt in US dollars will suffer the most.’…(QUA)

So not only are the other countries of the world forced to either increase their own rates or devalue their own currency, but if they borrow in US Dollars, they have to pay back even more, in dollar terms:

…So every time Fed chair Jerome Powell stands up to the podium to announce the central bank’s next interest rate decision, he is upping the cost of borrowing for the whole world.’…(QUA)

If the BRICS nations link or back (where the currency is actually convertible into gold) their prospective reserve currency with a proven monetary commodity (Gold) it should bring a level of stability that is not dependent or subject to the policy decisions of the United States or the Federal Reserve.

The countries of the world are tired of being whipsawed by Fed policies.

Gold is the eternal constant. IMHO, the BRICS will use Gold as a lynchpin in the establishment of their new currency. The rabid purchase of Gold by central banks that is noted above is a harbinger of its future employment in wider financial matters to come.

Also IMHO, crypto in and of itself has no inherent worth. Crypto and its backbone, blockchain, has an immense amount of inherent utility. Since the new coming world reserve currency will have a gold component, it must also be linked to an electronic medium for the instantaneous accounting and settlement of trade and transactions. Combining Gold (value) and crypto (accounting) can make sense if done right.

A gold backed Cryptocurrency is in the works between Russia and Iran.

…’The token is projected to be issued in the form of a stablecoin backed by gold, according to Alexander Brazhnikov, executive director of the Russian Association of Crypto Industry and Blockchain.

…The stablecoin aims to enable cross-border transactions instead of fiat currencies like the United States dollar, the Russian ruble or the Iranian rial. The report notes that the potential cryptocurrency would operate in a special economic zone in Astrakhan, where Russia started to accept Iranian cargo shipments.’… (Cointelegraph 1/16/2023)

Of course with any entity that gives you a piece of paper or a token on your phone and says that it represents ‘X’ amount of gold should be constantly verified. That can only happen if there are open and regular professional audits of the gold that is backing any kind of electronic token if this kind of system is to be trustworthy.

The world is working feverishly to break free from the dollar hegemony of the United States. Gold will be a key to the new system as it has been real money for 5,000 years. Crypto will play a part as a transaction and accounting mechanism.

To the American populace (this is not financial advice-consult for financial professional): If your net worth is invested in dollar denominated assets including but not limited to 401(k), pension plan, savings accounts, Certificate of Deposit, mutual funds, stocks and bonds and the like you will most likely not believe how low the value of your assets can go when your country is not the holder of the world reserve currency.

How long will will this take to happen? Most likely slowly and then all at once. What can you do (again, this is not financial advice)? Consider following the lead of the BRICS nations and own real wealth through -physical- precious metals. If the dollar falls, things will be fixin’ to get rough so food, water (filtration/collection), shelter, energy and protection.

And most importantly, a true and honest relationship with Jesus Christ our Savior. It’s all about Him and what He did for us. When it’s all said and done you either have Him and heaven or you have hell and torment.

When the Dollar loses its reserve status Gold will be king of the monetary world. When war, famine, pestilence and financial collapse come, Jesus Christ will be a real help in your time of need, in this life and the next if you accept Him as Lord and Savior.

———-

If you appreciate this article can you consider a gift to Encouraging Angels for the intelligence we provided today? Click this link to give. We need the support. Links to this article are encouraged. Reproductions of this writing are only allowed by written permission of the author and those reproductions must include this proviso of request for support, how this writing may be reproduced and following disclaimer.

All rights reserved.

Stan Szymanski (or Encouraging Angels) is not a medical doctor. This is not medical advice. In all matters pertaining to the health and care of a human being consult a medical doctor. This is not legal, financial or personal advice. Consult appropriate professionals in those fields for that type of advice.