Sokipiriye Dokubo
The BRICS bloc (Brazil, Russia, India, China, and South Africa) is making significant strides towards replacing the US dollar with cryptocurrency for international trade.
According to Anatoly Aksakov, Chairman of the Russian State Duma Committee on the Financial Market, the alliance is actively working on utilizing digital assets instead of fiat currency for international transactions. This move is part of the bloc’s long-standing de-dollarization initiatives, which aim to promote local currencies and reduce dependence on the US dollar.
The development of digital currency solutions has been a priority for BRICS since the introduction of its BRICS Pay system. Now, the bloc is taking a crucial step towards a dollar-less future by exploring the use of Central Bank Digital Currencies (CBDCs) to substitute for fiat currencies. This move is notable, given the United States’ opposition to similar projects in the West.
Russian Deputy Foreign Minister Sergey Ryabkov has also discussed the creation of new platforms for financial dealings, which would support the use of digital assets instead of fiat currencies. He proposed the idea of a “BRICS Bridge” – a platform that would unite the financial systems of the BRICS members, utilizing stablecoins or other digitized currency forms. This would provide a seamless way for the ten BRICS countries to de-dollarize and conduct international trade without relying on the US dollar.
The implications of this move are significant, as it would not only reduce the dominance of the US dollar in international trade but also increase the use of digital assets in global financial transactions. As the BRICS bloc continues to expand and promote multipolarity, its commitment to de-dollarization and digital currency solutions is likely to shape the future of international trade and finance.