The global financial media is buzzing with speculation. In recent months, some analysts, particularly in media outlets of Global South countries, have highlighted rising gold prices and reported that several central banks, including India’s, are exploring the creation of gold-backed digital currencies. These narratives often suggest that BRICS countries might one day introduce a currency capable of dethroning the US dollar.

The reality, however, is far more complex. While gold-backed digital tokens exist in the private sector, for example, Pax Gold and Tether Gold, these are niche financial instruments, not national currencies. No BRICS country has issued, or is close to issuing, a state-backed digital currency tied to gold or any other element that could compete with the dollar at the global level.

The allure of a gold-backed digital currency created by BRICS is understandable: gold is historically perceived as a safe-haven asset, and the idea of tying a new currency to a tangible commodity appeals to investors wary of fiat money. However, creating a new currency that rivals the dollar is not a matter of physics or metallurgy, it........

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