GLOBAL DIGITAL TIMES | The dollar has dominated for years. However, soon he will be unchallenged as Russia and its allies quickly create a new currency.

February 24, 2023, exactly one year since Russia's first invasion of Ukraine. During that time, many sanctions were also imposed by Western countries on Russia which caused Russia's economy to decline and made officials rack their brains to save the red bear country.

And sparked a brilliant idea that is to make their own currency.

Yes, its own currency. The problem is that currently the US dollar dominates the world economy.

As a result of that, America can easily impose sanctions on countries that don't bestie with them because America knows that their currency is that important.

Because of that, many countries oppose dollar hegemony, including Russia and its friends. The BRICS countries are in the process of creating a new medium for payments and have a strategy that neither the euro nor the dollar benefits, says Russian MP Alexander Babakov.

Later, the BRICS currency will be equated with gold or other commodities like it used to be in the early 1900s. This is of course different from the US dollar, where their money supply is determined by their Central Bank (The Fed).

But the question is, will this work? Considering that several other superpower countries also want to join the BRICS, including Indonesia.

Is it true that the BRICS currency can eliminate the dominance of the dollar in the world?

According to a number of parties, this will be difficult to implement given the different economic status of the five countries.

China the superpower, Brazil and South Africa which are economically strong but not strong commodity prices and Russia which is the weakest economy of them all.

Not to mention, China and India are still arguing over territorial issues. This finally generates a new question. So who will manage the full stewardship of this money?

The problem is, with the difference in economic status, the inflation rate and export profile will also vary. In addition, the transition process from dominating the US dollar to the BRICS currency will also be quite difficult.

Because since the end of World War I the dollar has started to become the main payment throughout the world. Quoting an economist from the Efficient Group, Dawie Roodt, there will indeed be a time when the US dollar will no longer be the world's reserve currency but for now, the US dollar will continue to dominate.