BRICS Nations Move Toward Dollar Replacement, XRP Could Benefit
- BRICS nations aim to reduce reliance on the U.S. dollar, trying new trade currencies that may change global finance.
- XRP rises as a strong competitor for a BRICS digital payment system, aligning with the group’s push for economic independence.
- The upcoming BRICS summit will play an important role in making a blockchain-based payment system, signaling a financial shift.
The BRICS countries have decided to give up using the US dollar as a medium of exchange shows that the nature of international trade may change. Their goal is to not rely on the dollar, which has dominated international energy and currency trading. This choice may have a serious effect on the US economy, strengthening the dollar and raising inflation.
As a result, efforts to find a new currency for use in global trade are intensifying. BRICS adopting a digital currency , XRP, a popular digital currency, maybe the main candidate for the payment system.
BRICS Examining Currencies Other Than the US Dollar
Payment systems are changing as Brazil, Russia, India, China, and South Africa work on developing a replacement that may remove the US dollar from international trade. In 2023, one-fifth of oil trades were conducted in non-dollar currencies, showing a shift in global financial dynamics. The possible change from the petrodollar could increase de-dollarization, leading to reduced global demand for the dollar.
Moreover, ongoing U.S. trade wars and sanctions, particularly with China and Russia, have pushed BRICS to explore independent financial systems . As part of these efforts, BRICS leaders are discussing blockchain technology and a possible digital payment platform to ensure economic independence. Significantly, this move could reshape global financial markets.
Read CRYPTONEWSLAND on google newsBRICS Digital Payment System in Development
Already in development is a payment system built on the BRICS blockchain. Yury Ushakov, a Russian presidential advisor, claims that member states would be able to settle payments using digital currencies issued by central banks through the BRICS Bridge multisided payment platform. The goal of this system is to offer a politically neutral and reasonably priced substitute for the SWIFT system, which is now controlled by the US dollar.
Finalizing these changes will depend greatly on the October 22–24, 2024, BRICS conference in Kazan, Russia. With 24 national leaders expected to participate, this will be a pivotal event in the global transition toward financial multilateralism. The summit’s main goal is to promote economic growth outside of the dollar-based system by fortifying ties between the BRICS and other Global South states.
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