According to a recent statement from the Chairman of the Russian State Duma Committee on the Financial Market Anatoly Aksakov, the BRICS bloc is working to replace the US dollar with cryptocurrency for trade. Indeed, Aksakoc discussed the alliance’s work to utilize digital assets in place of fiat currency for international transactions.
The economic alliance has long embraced its de-dollarization initiatives, along with the promotion of its local currencies. Subsequently, the development of digital currency solutions has been a priority since the arrival of its BRICS Pay system. Now, those efforts are set to carry the b loc toward a dollar-less future.
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BRICS Bloc to Utilize Digital Assets in Place of the Dollar in Trade
Throughout the last year, the BRICS bloc has embraced its opportunity to create a multipolar world. Its five-nation expansion effort enacted at its 2023 annual summit was one of the key pillars of that. However, so too is its commitment to the further embrace of local currencies in unilateral trade dealings.
Now, the alliance is taking a clear step forward in that regard, as the BRICS bloc is seeking to replace the US Dollar with cryptocurrency for international trade. Indeed, Russia stated that the bloc represents a “serious channel to replace fiat currencies in international transactions.”
What makes the prospect of this all the more interesting for the collective is that they appear committed to developing their own Central Bank Digital Currencies (CBDC) for which to substitute with fiat. Alternatively, the United States has been clear on its stance against such a project in the West.
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Altogether, these projects should provide a clear opportunity for the BRICS bloc to continue to de-dollarize. Moreover, Russian Deputy Foreign Minister Sergey Ryabkov has recently discussed the development of new platforms for financial dealings. Specifically, these would support the presence of increased digital assets as opposed to fiat offerings.
Ryabkov discussed the “option of creating a platform that would unite the financial systems” of the BRICS members. What he called a “BRICS Bridge” would require stablecoins or other digitized currency forms. This would integrate a clear way for the ten BRICS countries to de-dollarize.
However, it would also increase concern with the US dollar being absent from any international dealing with the alliance members, and nations seeking to embrace such unilateral trade.
