Recent developments in global finance and geopolitics indicate a period of significant flux, marked by the convergence of economic pressures, shifting alliances, and technological advancements.
A virtual emergency meeting of BRICS nations, convened by Brazil, underscores the escalating tensions surrounding international trade and currency dominance.
Concurrently, claims from Russian officials regarding the United States’ strategy to manage its national debt through cryptocurrency mechanisms have introduced a new dimension to the discourse on global financial stability.
The BRICS Response to Trade Pressures
On September 8, 2025, an extraordinary virtual summit of the BRICS countries – Brazil, Russia, India, China, and South Africa, along with newly expanded members Egypt, Indonesia, Iran, UAE, and Ethiopia – was held at the initiative of Brazilian President Luiz Inacio Lula da Silva [1, 4, 7].
The primary agenda for this urgent gathering was to address the impact of escalating trade tensions, particularly the tariffs and sanctions imposed by the United States [3, 9].
The BRICS bloc, which has been actively pursuing a multipolar world order and a move away from the U.S. dollar and the SWIFT international payment system, views these measures as a direct threat to their economic sovereignty and collective vision [1, 2].
Chinese exports to the United States, for instance, have reportedly decreased by 33 percent since the implementation of tariffs – according to Dr. Kirk Elliott – renowned precious metals dealer and owner of Kirk Elliott Precious Metals – prompting a strong reaction from Beijing.
This economic pressure has led BRICS nations to seek unified actions against what they perceive as unilateral trade practices [5, 12].
What does this emergency meeting portend for us?
The immediate implication is a concerted effort by these nations to safeguard multilateralism and promote common development, as articulated by Chinese Foreign Ministry spokesperson Ling Zhang, who stated:
“China stands ready to work with other parties to further act on the BRICS spirit of openness, inclusiveness, win-win cooperation, promote high-quality development of greater BRICS cooperation, and jointly work for a more just and equitable global governance system.”
This rhetoric, while seemingly aligned with global cooperation, is interpreted by some analysts as a response to perceived economic disadvantages and a desire to rebalance global power dynamics.
The long-standing objective of de-dollarization, first articulated by Russian President Putin at a BRICS symposium in Durban, South Africa, remains a central theme in their collective strategy.
Putin stated, “we’re going to de-dollarize the world. That’s our objective, and it’s irreversible.”
The recent depreciation of the U.S. dollar, reportedly down over 10 percent year-to-date, is cited by some as an indicator of diminishing demand for the currency, further fueling the BRICS’ ambition for alternative financial systems.
Russia’s Allegations: US Debt and the Crypto Cloud
A significant and controversial claim has emerged from Russia, alleging that the United States intends to address its substantial national debt by leveraging the cryptocurrency market, specifically through stablecoins [2, 4, 6].
Anton Kobyakov, an advisor to Russian President Vladimir Putin, stated that the U.S. plans to push everyone into crypto using a stablecoin strategy, and then devalue the currency once widespread adoption occurs.
The Russian statement reads: “This time by pushing everyone into the crypto cloud. Over time, one part of the U.S. national debt is placed into stable coins. Washington will devalue that debt.”
This strategy, according to Kobyakov, would allow the U.S. to “start from scratch” with its financial obligations [3, 4].
The current U.S. national debt stands at approximately $37.43 trillion [8, 9].
Kobyakov’s assertion suggests a multi-stage process where a portion of this debt would be transferred into stablecoins, followed by a deliberate devaluation [3, 5].
This claim draws parallels to historical instances where the U.S. addressed financial problems at the world’s expense, specifically referencing the 1930s and 1970s, as the Russian statement notes: “As in the 1930s and 70s, the U.S. plans to solve its financial problems at the world’s expense.”
(Ed. Note: In the 1930s, the U.S. abandoned the gold standard during the Great Depression, devaluing the dollar and transferring economic burden to other gold-standard countries. In 1971, Nixon ended dollar-gold convertibility under the Bretton Woods system, effectively forcing other nations to absorb the costs of U.S. monetary expansion.)
Is this a plausible scenario, or mere geopolitical rhetoric?
The concept hinges on the nature of stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a fiat currency, typically the U.S. dollar.
The argument posits that by creating demand for the U.S. dollar through dollar-backed stablecoins, the U.S. could temporarily offset the effects of its massive debt and uncontrolled government spending.
As Dr. Kirk Elliott explained, “he’s [President Donald Trump] created demand for the US dollar where there wasn’t one before, right, in the decentralized blockchain.”
However, critics argue that such a strategy would not address the fundamental issues of fiscal irresponsibility and could ultimately lead to a similar, if not worse, financial predicament.
The Role of Stablecoins and the GENIUS Act
The discussion around stablecoins in the U.S. has gained momentum with legislative efforts such as the “Guiding and Establishing National Innovation for US Stablecoins of 2025,” or the GENIUS Act [11, 12].
This act aims to establish a framework for U.S. stablecoin issuance, imposing regulatory requirements on issuers concerning capital, liquidity, and risk management [13].
It also subjects stablecoin issuers to the Bank Secrecy Act, mandating anti-money laundering measures [10].
The proponents of stablecoins argue that they can create new demand for the U.S. dollar, particularly in decentralized blockchain environments, thereby counterbalancing the effects of a depreciating dollar.
Companies like Circle (USDC), Tether (USDT), and others have already issued dollar-backed stablecoins, effectively tying a digital token to the U.S. dollar.
You’ve now got the USDC, Circle’s version of a stablecoin backed by the US dollar, Tether’s USDT, Trump’s World Liberty USD1, PayPal, Gemini, Ripple’s version. They all have the US dollar that’s attached to a token.
This, some suggest, could prolong the time before the U.S. debt crisis reaches a critical point, as the demand generated by stablecoins might temporarily overcome the pressures of excessive spending.
As Dr. Kirk Elliott stated: “But creating the demand for the dollar through the stable coin is actually going to actually lengthen and prolong the time. Hopefully, that demand will overcome the spending.”
However, the underlying concern remains: if government spending is not curtailed, any temporary relief provided by stablecoins would be unsustainable.
Dr. Elliott continued by saying: “If you don’t cut spending, I don’t care how much money you make, ultimately, the cost of servicing that debt will sink the ship eventually.”
Gold, Crypto, and Trust in the Financial System
The rise in popularity of both gold and cryptocurrencies is often attributed to a growing distrust in traditional financial systems and government institutions.
Gold and silver have seen significant price increases, with gold up 39% and silver up 42% year-to-date.
Similarly, many cryptocurrencies have experienced substantial gains. This trend suggests a fundamental shift in investor sentiment, as individuals seek alternatives to fiat currencies and centralized banking systems.
Why are people flocking to these seemingly disparate assets?
The common thread is a desire for assets perceived as being outside the direct control of governments and central banks.
While gold and silver represent tangible assets with historical value, decentralized cryptocurrencies offer a digital alternative that operates independently of traditional financial intermediaries.
The choice between central bank digital currencies (CBDCs), which offer governments complete control over transactions, and decentralized blockchain solutions, which prioritize privacy and autonomy, represents a critical juncture in the future of money.
(Ed. note: The implications of widespread adoption of either CBDCs or decentralized cryptocurrencies are profound, impacting individual financial freedom and governmental oversight.)
Geopolitical Implications and the Future Outlook
The interplay between BRICS’ efforts to establish a multipolar financial order and the U.S.’s alleged stablecoin strategy underscores a broader geopolitical struggle for economic dominance.
The BRICS nations aim to replace the U.S. dollar as the world’s reserve currency with their own common currency.
However, the perceived instability of some BRICS economies and a general lack of trust in their financial systems present significant hurdles to this ambition.
The current global economic landscape is characterized by a complex web of interconnected challenges, including trade disputes, national debt, and the evolving role of digital assets.
The emergency BRICS meeting and the claims regarding U.S. debt management through crypto highlight the urgency with which nations are seeking to navigate these turbulent waters.
The outcome of these ongoing developments will undoubtedly shape the future of international finance and the balance of global power.
References
[1] YouTube – BRICS emergency virtual meeting
[2] Cointelegraph – Putin adviser claims US using stablecoins, gold to devalue its $37T debt
[3] Yahoo Finance – US Devised Crypto Scheme to Erase Massive $35T Debt: Putin Advisor
[4] CryptoSlate – Putin adviser accuses US of planning stablecoin scheme to eliminate 35 trillion debt
[5] EADaily – The leaders of the BRICS countries agreed on joint actions against the United States
[6] Ainvest – Can Bitcoin and Stablecoins Offer a Strategic Solution to the U.S. Debt Crisis?
[7] Reuters – Brazil’s Lula calls for tighter trade ties for BRICS as tariffs bite
[8] U.S. Treasury Fiscal Data – Understanding the National Debt
[9] Peterson Foundation – What Is the National Debt Right Now?
[10] White House – Fact Sheet: President Donald J. Trump Signs GENIUS Act into Law
[11] Congress.gov – S.1582 – GENIUS Act – 119th Congress (2025-2026)
[12] Congress.gov – Text – S.394 – 119th Congress (2025-2026): GENIUS Act of 2025
[13] Sidley – The GENIUS Act: A Framework for U.S. Stablecoin Issuance
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