The BRICS group is attempting to replace the US dollar in trade with cryptocurrencies, according to a recent statement made by Anatoly Aksakov, the chairman of the Russian State Duma Committee on the Financial Market. In fact, Aksakoc talked about the alliance’s efforts to replace fiat money with digital assets in international commerce.
The economic alliance has long supported its local currency promotion and de-dollarization measures. Since the launch of its BRICS Pay system, the creation of digital money solutions has consequently taken precedence. Currently, those initiatives are aimed at advancing the bloc toward a post-dollar world.
The BRICS bloc will trade in digital assets rather than dollars
The BRICS group has seized the chance to establish a multipolar world over the past year. One of the main cornerstones of it was its five-nation expansion endeavor, which was implemented during its annual summit in 2023. Its dedication to advancing the use of local currencies in one-sided trade agreements is also unwavering, though.
The BRICS group is currently looking to use cryptocurrencies in place of US dollars for international trade, which is a definite step forward for the alliance in that direction. In fact, the bloc is a “serious channel to replace fiat currencies in international transactions,” according to Russia.
The fact that they seem dedicated to creating their own Central Bank Digital Currencies (CBDC) to replace fiat money makes the possibility of this much more intriguing to the group. On the other hand, the US has made it apparent that it opposes this kind of enterprise in the West.
When taken as a whole, these initiatives ought to offer the BRICS countries a distinct chance to keep dedollarizing. Furthermore, the creation of new platforms for financial transactions has been recently proposed by Sergey Ryabkov, the deputy foreign minister of Russia. In particular, this would be in favor of more digital assets being offered rather than fiat money.
The “option of creating a platform that would unite the financial systems” of the BRICS countries was one of Ryabkov’s topics of discussion. For what he referred to as a “BRICS Bridge,” stablecoins or other digital currency forms would be necessary. This would incorporate a clear path toward dedollarization for the ten BRICS nations.
It would, however, also heighten concerns about countries attempting to adopt such unilateral trade and the US dollar being missing from any international transactions with the alliance members.