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- BRICS nations have been conducting discussions on developing a new currency and fostering closer financial ties among member nations.
- The proposed BRICS accounting unit could potentially evolve into a real currency in the event of the US Dollar’s collapse.
As per a statement from a Russian IMF representative, BRICS nations are poised to propose an alternative to the US Dollar amid concerns about its weakening value, necessitating preparation within the bloc for such a scenario. Comprising Russia, India, China, Brazil, South Africa, and their allies, the BRICS alliance has been actively exploring alternatives to the US Dollar for some time, per the Crypto News Flash report.
Efforts within the BRICS bloc include the development of a new currency to supplant the US Dollar, alongside fostering closer ties using local currencies among member nations. In an interview with RIA Novosti published on Friday, Alexey Mozhin, the Russian IMF representative, underscored the growing inadequacies of the existing financial system. He further highlighted that numerous publications have begun to tout BRICS as a viable alternative to the US Dollar. Speaking to RIA Novosti, the director of BRICS said:
“Such a proposal is being discussed. In the event of the collapse of the dollar and the international monetary system, it will be necessary to turn the said BRICS accounting unit into a real currency, backed by exchange goods.”
BRICS to Leverage Blockchain?
Reports indicate that the BRICS bloc is embracing blockchain technology for its newly devised payment system. Their endeavors are geared toward constructing a rival currency grounded in digital assets. While the US Dollar’s collapse isn’t imminent, the groundwork is being laid for BRICS to make an impact.
The “BRICS Bridge” initiative, as proposed, aims to unify the digital currency systems and financial messaging platforms across member nations, per the Crypto News Flash report.
Currently, the greenback reigns as the global reserve currency, yet escalating US Debt suggests this status quo is not everlasting. Moreover, support for the BRICS bloc has surged in recent years, with additional countries likely to be invited to join in 2024.
With expanding backing both in terms of membership and financial resources, BRICS could forge a potent challenger to the US Dollar. Although victory may not be immediate, the uncertainty surrounding the US currency could contribute to its eventual decline in the long run.
Additionally, the BRICS have also been considering introducing stablecoin settlements for international trade and sending remittances. Russian Deputy Minister of Foreign Affairs, Sergei Ryabkov, has declared the involvement of the Russian central bank in stablecoins. He emphasized that stablecoins could serve as conduits between BRICS states, reducing reliance on traditional currencies. This initiative embodies a significant vision akin to the euro’s role as a regional currency, fostering financial autonomy, per the Crypto News Flash reportCrypto News Flash report.
