Member countries of the BRICS group are exploring the possibility of introducing a digital currency, known as a stablecoin, as a substitute for using the US dollar in international money transfers and commerce.
BRICS To De-Dollarize Trade With Stablecoin
In a recent interview, Russian Deputy Foreign Minister Sergei Ryabkov revealed that the bloc is exploring the possibility of using stablecoins for international transactions. Furthermore, they are working on “BRICS Bridge,” a system designed to enable seamless CBDC payment interactions between member countries.
Additionally, he discussed the significance of a cryptocurrency backed by fiat currencies for the group, which could promote financial harmony among BRICS nations. This might be a roundabout method for these countries to eventually introduce their own currency. The extent of their research and plans for the proposed stablecoin remains unclear.
The BRICS countries, consisting of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, have been contemplating nondollar options for some time. This movement towards de-dollarization has picked up momentum in recent months due to rising inflation and economic downturns.
Recently, the bloc unveiled plans for a new digital payment system using cryptocurrencies and blockchain technology. According to Russia’s senior presidential aide Yury Ushakov, this alternative method aims to be “user-friendly for governments, citizens, and businesses alike, inexpensive, and free from political influence.”
Stablecoin Market Seeing Immense Adoption Growth
Significant, this development from the BRICS Group occurs during a surge in usage of stablecoins within the digital currency sector. The stablecoin market has recently surpassed $160 million, suggesting a notable achievement last witnessed in 2022.
About a week ago, Triple-A, a payments company based in Singapore, revealed its plan to add PayPal’s stablecoin as an option for merchants using their platform.
Ripple, a leading company in blockchain payments, announced its intention to introduce a stablecoin, further fueling investor demand for this unique asset class. The consideration of stablecoins by a growing alliance like BRICS adds to the excitement, ensuring that the ecosystem will experience increased adoption in the future.
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2024-04-24 00:15