BRICS Shifts From US Dollar to Cryptocurrency in Trade
In a recent announcement, Anatoly Aksakov, Chairman of the Russian State Duma Committee on the Financial Market, shed light on the BRICS bloc’s strategic move to phase out the US dollar in favor of cryptocurrency for trade transactions.
This major development highlights the bloc’s ongoing efforts towards de-dollarization and enhancing the usage of local currencies in global commerce.
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has been actively pursuing initiatives to diversify away from the US dollar dominance. With the introduction of the BRICS Pay system, there has been a concerted push towards digital currency solutions, marking a significant stride towards a future less reliant on traditional fiat currencies.
Throughout the past year, the BRICS bloc has made significant developments in reshaping the global economic landscape, notably through its expansion efforts and emphasis on local currency usage in bilateral trade. Now, the alliance is poised to take a bold step forward by exploring the integration of cryptocurrency into international trade.
What sets this initiative apart is the bloc’s resolve to develop its own Central Bank Digital Currencies (CBDCs) to replace fiat currencies. In contrast, Western powers, notably the United States, have voiced skepticism towards such endeavors.
This shift towards cryptocurrency not only signifies a departure from the US dollar but also offers the BRICS bloc greater autonomy and resilience in the face of global economic uncertainties.
Sergey Ryabkov, Russian Deputy Foreign Minister, highlighted plans to establish new financial platforms supporting digital assets, paving the way for enhanced trade mechanisms among BRICS nations.
Ryabkov also proposed the concept of a “BRICS Bridge,” envisioning a unified platform integrating the financial systems of member states through stablecoins or other digitized currency forms. This innovative approach not only facilitates de-dollarization but also streamlines financial transactions within the alliance.
While these developments signal a seismic shift in global trade dynamics, concerns loom over the potential exclusion of the US dollar from international dealings with BRICS member nations. However, as the alliance progresses towards embracing unilateral trade agreements, the prospect of a dollar-less future becomes increasingly palpable.
