A new payment system has been approved for BRICS, signaling a potential move away from the US dollar. Speculation is rife about the inclusion of cryptocurrencies like Bitcoin or Ripple’s XRP for international settlements.
Russian President Vladimir Putin has given the green light to an alternative currency strategy for the BRICS group, indicating a significant shift towards using Ripple’s XRP for cross-border payments. This move, announced at the SPIEF 2024 Conference, aims to establish a more independent financial framework, enhancing national currency sovereignty and safeguarding against political and sanction influences through the use of blockchain technology.
The newly proposed payment system, designed to be digital, fair, and cost-effective, prioritizes inclusivity for governments, businesses, and the public. Additionally, BRICS nations are working on strengthening banking networks and increasing trade with national currencies, with plans to diversify currency use beyond the US dollar through the expansion of the Contingent Reserve Arrangement.
Key developments include the integration of blockchain technology to ensure a secure platform resistant to external manipulations, a focus on inclusivity and efficiency, and an expansion of banking networks and currency use within the BRICS group. The choice between Bitcoin and Ripple’s XRP as the foundation for the system is crucial, with Ripple’s XRP currently trading at $0.498, showing potential suitability for the new payment system.
These steps mark a significant move towards economic autonomy for the BRICS, showcasing their strategic shift towards advanced technological financial solutions.