- BRICS alliance becomes stronger as 36 more developing countries apply to become members in a bid to ditch the US dollar.
- A Russian diplomat has also proposed the creation of a BRICS payment system that incorporates blockchain technology and some digital financial assets.
Amid a shifting global landscape, BRICS has emerged as a formidable force as its de-dollarization agenda triggers interest among developing countries. According to South Africa’s Foreign Minister Naledi Pandor, 36 countries have so far in 2024 expressed interest to join the alliance.
Interestingly, all of these applicants are reportedly within the groups of developing economies. While the names were not disclosed, experts believe that the decision stems from the desire to strengthen their economies using their native currencies. Unfortunately for the US, several sectors including the banking and the financial sector would be greatly hit.
According to reports, tourists would move away from the US dollar and resort to making payments with local currencies. This has already commenced in China and Singapore.
Over the years, the US Dollar has been used as a tool to enforce economic sanctions with Russia recently becoming a victim. Interestingly, moving away from the dollar as campaigned by the BRICS could greatly benefit them, explaining why Russian President Vladimir Putin called on the Middle East to not accept the US dollar for oil payments as recently reported by Crypto News Flash.
If oil producers in the Middle East stop using the US dollar, it will be the end of the dollar.
Would BRICS Create its Currency?
Throughout last year, it was speculated that BRICS added oil-producing countries into its alliance to effectively push its agenda. According to reports, Saudi Arabia, the main oil-producing country is currently weighing options to either join the bloc or not. However, it is rumored that the Kingdom could decline since it currently seeks to thrive beyond the oil and gas phenomenon.
Several individuals have called for a BRICS currency as part of the plan to move away from the dollar dependency. One of them is Russian diplomat Yury Ushakov. According to him, the proposed currency payment system would certainly incorporate blockchain technology and digital financial assets. This was comprehensively covered by the Crypto News Flash.
We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.
This has created the impression that Bitcoin could be chosen as one of the accepted assets for cross-border payments among member countries. The diplomat explained that the proposed BRICS payment system would be convenient for governments, businesses, and individuals.
The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics.
For now, the specific task this year is to increase the role of BRICS in the International Monetary System. Recently, it was reported that Russia’s Finance Ministry, the Bank of Russia, and BRICS would partner to create the BRICS Bridge multisided payment platform as part of the strategies to improve the global monetary system.
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