SNEAK PEEK
- Economic powerhouses are increasing efforts to avoid US dollar hegemony.
- A top Russian official has shared that the BRICS alliance is in the process of developing its own currency.
- China and Brazil made a deal to trade in their own currencies and remove the US dollar as the intermediary.
A leading Russian official has said that the BRICS alliance is developing its own currency. An acronym for five top emerging economies, BRICS refers to Brazil, Russia, India, China, and South Africa.
Alexander Babakov, State Duma Deputy Chairman, commented at the St. Petersburg International Economic Forum event in New Delhi, India.
Babakov emphasized the role of both nations working to create a new medium for payments. He added that digital payments are promising as well as viable. Adding on, Babakov shared that the currency could be of great benefit to China and other BRICS members.
He further said:
“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the US’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”
Moving on, he postulated that the new currency will be protected by gold and other commodities like rare-earth elements.
Former Goldman Sachs chief economist Jim O’Neill called on the BRICS bloc to grow as well as challenge the dollar’s dominance. He wrote that the U.S. dollar plays a way too dominant role in worldwide finance.
A BRICS currency is nothing new. In 2019, members of the bloc discussed the development of a new digital currency for a unified payments system.
China and Brazil made a deal to trade in their own currencies, this week. As a result, the US dollar will be eliminated as the intermediary, which will empower both countries to avoid the world’s reserve currency.
The deal will allow China and Brazil to carry out trade and financial transactions directly. Having said that, Chinese yuan will be exchanged directly for Brazilian real and vice versa.
China is moving forward with its CBDC project, and Brazil is witnessing growth in crypto adoption after the legalization of it as a payment method in the country. However, Uncle Sam is dedicated to continuing its war on crypto, thanks to financial regulators exerting strong pressure on the embryonic industry.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://investorbites.com/prospects-of-brics-nations-to-create-a-new-currency/
