BRICS, the alliance consisting of Brazil, Russia, India, China, and South Africa, has announced its plans to develop a stablecoin, sparking speculation that they may consider utilizing Ripple’s XRP. Ripple, known for its Central Bank Digital Currency (CBDC) platform, assists central banks, governments, and financial institutions in creating their own stablecoins.
The confirmation of BRICS’ stablecoin project has led to discussions within the community about the possible integration of Ripple’s XRP. Sergei Ryabkov, the Russian Minister of Foreign Affairs, has confirmed that the alliance intends to launch a stablecoin to facilitate international transfers.
Given Ripple’s reputation for facilitating instant cross-border payments, it could play a significant role if the BRICS countries proceed with their de-dollarization stablecoin initiative. The XRP community believes that XRP could serve as a bridge between the currencies of the member countries. Ripple’s On-Demand Liquidity product, now known as Ripple Payments, has been recognized by the IMF and the World Bank for its revolutionary capabilities.
China and Russia have set a target to conduct over $260 million in trade exchanges without relying on the US dollar by 2024. Other countries have also entered into similar agreements involving billions of dollars, all in an effort to reduce the international influence of the US dollar.
The Russian minister has expressed the intention of BRICS to develop its own platform for creating and issuing a gold-backed stablecoin. However, many in the community believe that utilizing Ripple’s technology would be a more suitable option.
While it is still early in the development of the BRICS stablecoin project, and any involvement of XRP is speculative, the potential role of XRP in BRICS transactions could be a significant breakthrough for the cryptocurrency. This could lead to widespread adoption and increase demand and value for the digital asset.
As of now, XRP has experienced a 3% increase, extending its weekly surge by 6%. Trading at $0.54, investors are optimistic about retesting short-term resistance levels at $0.55 and $0.60.
XRP’s price performance has been hindered in recent years, primarily due to the ongoing legal battle between Ripple and the SEC. The SEC has accused Ripple of issuing securities through XRP and has filed a lawsuit against the company. As the case nears its conclusion, investors anticipate a potential rally for XRP, with hopes of reaching its all-time high of $3.84, achieved in 2018.
