Chinese president, Xi Zinping, recently went to Moscow to meet with Putin. While there, the two signed various cooperation agreements ranging from economic trade to the joint production of television programs.
Side note: If two states are concerned about producing TV shows together, the primary purpose is for propaganda and not your entertainment.
Anyway, the big news that broke today is that Russia will now be using the Chinese Yuan to settle payments when trading with Africa, South America and Asia. Here’s an excerpt from Putin’s speech..
🇷🇺 Russia to use Chinese yuan instead of US dollars to settle trade with Asia, Africa, and Latin America. pic.twitter.com/ptuDybKL56
— Watcher.Guru (@WatcherGuru) March 22, 2023
Both China and Russia have been building up their gold reserves lately, and when it comes to gold production, they’re ranked #1 and #2 worldwide. China holds the top spot, while Russia is currently tied with Australia for the #2 position.
There’s a lot of speculation that a gold backed Yuan might be in the works, which is a move that would likely dethrone the USD as the world reserve currency.
Problem is, while a gold backed currency is certainly an improvement to the unbacked currency we’re currently using, it still requires trust in the government to maintain accurate backing – which monetary history shows isn’t a sure bet.
Also a concern is that the Yuan as the world reserve would give China too much influence internationally, and with them being an authoritarian, communist regime, that’s the last thing we want.
A sovereign, fully transparent, decentralized currency like Bitcoin which can’t be manipulated makes a lot more sense to serve that purpose.
Anyway, the biggest concern here is that historically, when leaders make moves to shift away from using the USD in international trade, war usually follows.
To learn more about those instances, read this article as it’ll explain the real motives for the destruction of Iraq, Libya etc.
