April 29, 2024
By Anjali Kochhar
BRICS, an organization of five major rising countries (Brazil, Russia, India, China, and South Africa), is increasing efforts to lessen reliance on the US currency in international commerce. A recent development has revealed intentions for a stablecoin effort within the union, generating debate about its possible impact on the global financial scene.
The announcement of plans for a BRICS stablecoin has highlighted the group’s continuous efforts to diversify away from the US dollar. Given the BRICS nations’ significant gold holdings, there is conjecture that the stablecoin will be backed by this precious metal.
Russian Deputy Foreign Minister Sergei Ryabkov has championed the benefits of stablecoins, emphasizing the potential for enhancing financial unity among BRICS members. This move reflects the bloc’s desire to fortify its economic standing and potentially pave the way for the creation of a native currency.
The pursuit of a BRICS stablecoin aligns with broader de-dollarization efforts, aiming to lessen dependency on the US dollar in global trade transactions. This initiative signals a push towards a more “multi-polar world” and could mark a significant shift in international trade dynamics.
Speculation abounds regarding the nature and backing of the proposed stablecoin, with suggestions that it could draw inspiration from XRP’s upcoming stablecoin on the XRP Ledger. Such developments hint at the potential for collaboration or inspiration from existing projects within the cryptocurrency space.
Advocates view BRICS’ move to create a stablecoin as a significant step towards fostering a decentralized marketplace. As de-dollarization efforts gain momentum, the envisioned stablecoin could offer benefits not only to BRICS economies but also to the broader global economy.
BRICS’ move to introduce a stablecoin resonates with their ongoing efforts to diminish reliance on the US dollar,” remarked Mr. Edul Patel, CEO of crypto exchange Mudrex. He highlighted the bloc’s proactive approach to financial digitization and successful ventures into CBDCs. “Introducing a stablecoin could further amplify their progress,” he added. Patel emphasized that as the world shifts towards digital finance, this initiative underscores BRICS’ commitment to shaping the future of global economic transactions.
Rajagopal Menon, Vice President of Indian crypto exchange WazirX, speculates that BRICS nations are developing their own stablecoin for wholesale trade settlements, potentially backed by gold. This move aligns with efforts to reduce dollar dependence and harness blockchain technology for regional economic growth. While no official announcement has been made, if realized, it could reshape global power dynamics and establish a new trade order. However, its efficiency and potential remain uncertain until further details are disclosed by the nations involved.
In conclusion, the announcement of BRICS stable coin ambitions highlights the group’s resolve to reclaim its financial independence and lessen its need on the US dollar. The specifics are still unknown, but such a development might have far-reaching effects and represent a paradigm change in the world economy.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
