A communication by Anatoly Aksakov, Chairman of the Financial Market Committee at the Russian State Duma, indicates that the BRICS nations are working on replacing the US dollar in their trade exchanges with a cryptocurrency solution. As reported, Aksakov talked about the coalition’s plans to employ digital currencies rather than traditional fiat for international trade. Anatoly Aksakov,

This economic consortium has consistently pursued a strategy of reducing reliance on the US dollar, advocating instead for the use of their national currencies. Building on this, the group has prioritized digital currency innovations, especially following the launch of the BRICS Pay platform. Their collective initiative is on the trajectory to transition the bloc to a future devoid of dollar dependency.

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BRICS Group to Adopt Digital Currencies for Trading Purposes Over the Dollar

In the previous year, the BRICS coalition has capitalized on the opportunity to create a diversified global economy. The addition of five nations at their 2023 summit was a pivotal element of this vision. More crucially, however, is their strategy to increasingly leverage local currencies for their trade activities.

The group is now advancing this agenda by proposing the substitution of the US Dollar with digital currencies for cross-border commerce. Russia’s announcement clarified that the consortium aims to be “a significant conduit for replacing traditional currency in global transactions.”

The intriguing aspect for the BRICS countries is their dedication to developing their Central Bank Digital Currencies (CBDCs) to replace fiat currency. This stands in contrast to the United States’ position against embarking on similar projects in the Western Hemisphere.

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The collective efforts of these initiatives are set to bolster the BRICS’ move away from using the dollar. Additionally, remarks from Sergey Ryabkov, Russian Deputy Foreign Minister, highlighted the progress in establishing new financial platforms favoring digital currencies over fiat money.

Ryabkov spoke about the possibility of forming a platform to connect the financial systems of BRICS members, a proposed “BRICS Bridge,” involving the use of stablecoins or other digital currency formats. Such a platform would facilitate de-dollarization for the now-expanded ten-country coalition.

Yet, this shift towards exclusive trade systems using national and digital currencies has the potential to raise concerns, notably in scenarios where the US dollar is excluded from transactions between the alliance’s member states and those looking to participate in such trade partnerships.