BRICS, the alliance of Brazil, Russia, India, China, and South Africa, is making progress in its plans to introduce a stablecoin for international settlements and reduce the dominance of the US dollar. Within the XRP community, Ripple’s XRP settlement platform has been hailed as the ideal option for BRICS to build, launch, and develop its digital assets.
BRICS has officially confirmed its intention to create and launch its own stablecoin. The goal is to utilize this digital asset for international payments and reduce the influence of the US dollar on global trade. There are rumors that the stablecoin will be backed by gold.
A recent report reveals that two prominent BRICS members, Russia and China, have signed a $260 billion trade agreement using their local currencies. This deal resulted in 95% of the settlement being conducted in Yuan, indicating a shift towards using their own currencies in international trade.
BRICS countries, including Egypt, Ethiopia, Iran, and the United Arab Emirates, are intensifying their efforts to distance themselves from the US dollar. By expanding their alliance to include powerful nations like Saudi Arabia and the UAE, BRICS reinforces its influence in the oil market. This, combined with settlements conducted in their own currencies, establishes a more independent economic bloc with advantages that extend beyond purely financial benefits.
In the past, there has been speculation within the crypto community that BRICS might adopt Bitcoin for international settlements. Bitcoin, the world’s first decentralized digital currency, offers financial independence and autonomy from traditional financial systems. The adoption of Bitcoin would pave the way for a more decentralized and multipolar global financial landscape.
The XRP community has started to advocate for Ripple’s XRP settlement platform as the ideal solution for building, launching, and developing BRICS’ stablecoin. The central bank digital currency (CBDC) platform, which was launched a few years ago, has undergone rigorous testing. Ripple, the issuer of XRP, has confirmed partnerships with at least 20 central banks to develop their digital assets.
While the Ripple platform would provide a well-established solution, the BRICS alliance has already announced its intention to develop its own blockchain-based payment system. According to Yury Ushakov, a Kremlin aide to Russia, this decision is part of the organization’s commitment to further its objectives. Ushakov explained that the move aligns with the BRICS Contingent Reserve Arrangement (CRA) framework.
Established in 2015 by the BRICS countries, the BRICS Contingent Reserve Arrangement (CRA) is a system designed to protect the organization from potential long-term global liquidity crises. The framework offers liquidity and precautionary tools, primarily in response to short-term balance of payments pressures.
The alliance has pledged to launch the platform in the coming months, raising the possibility of a collaboration with Ripple and XRP.
As of the time of writing, XRP is trading at $0.51 after experiencing a 6% decrease in the past week and minor fluctuations in the past 24 hours.