JUST IN: Saudi Arabia Joins CBDC Project mBridge (WHICH IS MASSIVE)
In a pivotal announcement, Saudi Arabia Joins CBDC Project mBridge. Taylor Kenney breaks it all down in a move that signals a significant challenge to the US dollar’s dominance, particularly in the oil market, traditionally upheld by the petrodollar system since established in 1972. Project mBridge, which excludes US dollar transactions, could catalyze a shift in global currency reserves, undermining the dollar’s demand and exacerbating US debt.
TRANSCRIPT:
Hi everyone. Thank you so much for being here. Big news today involving the BIS, CBDCs, the BRICs bloc coalition, and the petrodollar. The BIS, the Bank for International Settlements, commonly known as the central Bank for Central Banks, has been working closely with the BRICs bloc coalition, specifically China, to launch a new central bank digital currency, CBDC platform.
This platform is dubbed Project mBridge, and while it’s been in the works for a while, this week there was a new release that caught my attention not only because the platform is viable, but because they accepted a fifth full-time member that member no one other than Saudi Arabia. Now the reason why this is so important and so concerning to the US dollar is because Saudi Arabia is, of course, part of OPEC, the oil-producing countries and Saudi Arabia in particular is key to the United States dominance as having the global reserve currency.
What I mean by that is, in 1972, when the United States dollar was delinked from gold, there was an agreement made in the following years that all oil would be priced in USD. Because of this agreement, there is always demand for U.S. dollars because all oil is priced in U.S. dollars. Now, some countries have moved away from this, such as Russia or Iran, pricing in different currencies.
But ultimately, the effect of that has still been minimal. But should a country like Saudi Arabia start pricing their oil in a different currency, say the Chinese Yuan? Well, now we have a huge problem on our hands because the United States dollar will not be in as high of demand. Now, we don’t know for sure if that’s going to happen.
There has been a lot of speculation for a while, though, because Saudi Arabia has not been quiet on this topic. They have been saying now for months that they are open to and considering other currencies. In the past, this wasn’t even a possibility because there really weren’t any other currencies that they could have considered. But now, with the BRICs bloc growing stronger, there are other options and their strength in numbers.
So specifically with this Project mBridge one of the reasons why this feels like they’re laying the groundwork here is that mBridge does not support US dollars. So now we’re going to have Saudi Arabia be part of this project that specifically is intended to facilitate cross-border payments, but it won’t be in U.S. dollars.
If Saudi Arabia really does decide to make the move away from the US and does support trading oil and pricing oil and other currencies.
That would mean, again, that there would be much less demand for U.S. dollars. The reason why that is so important is because if the demand for U.S. dollars diminishes, then we lose our biggest asset the United States government’s biggest asset, biggest thing that they export are actually U.S. dollars. With the way that the debt is right now, if we continue to see a decline in demand for U.S. dollars and for U.S. debt, then we are going to continue to see rates increase and rapid inflation, the likes of which we’ve never seen before.
I mean, many people have said that ultimately, if the petrodollar collapses, the United States dollar collapses and therefore the U.S.. Now, I don’t want to sound extreme, but I do think that if the day comes when Saudi Arabia really does make this move away, which at this point it feels more like a win than an if, then we’re in serious trouble and we could see an actual currency reset be ushered in.
Now, what can we do to protect ourselves? I’ll tell you the same thing I tell my friends and family, and that I believe in wholeheartedly, which is, of course, to make sure that you’re protected outside of the dollar, that you don’t have your wealth stored in dollar-denominated assets because we can feel the temperature rising, the heat is on, and if the dollar starts to crumble even more than it already has, you’re going to lose your wealth along with it.
And that’s not what I want to see. That’s why I personally believe in physical, tangible gold and silver to protect yourself. Now, if you have any questions about this or you want to learn more, that’s what we’re here for. Our team has decades of experience and they would be happy to talk to you. All you have to do is click on that link below to talk to one of our expert analysts.
And if you have anyone who think would benefit from this, please be sure to share with a loved one like and subscribe. It really helps us get the word out. As always, I’m Taylor Kenney with ITM trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.
SOURCES:
https://www.bis.org/about/bisih/topics/cbdc/mcbdc_bridge.htm
