In the world of cryptocurrency, the growth of the sector becomes apparent as countries introduce stablecoin initiatives. The introduction of a stablecoin by BRICS countries—Brazil, Russia, India, China, and South Africa—can be seen as a reflection of their efforts to de-dollarize. Let’s look into the details of this move aimed at reducing the dominance of the American dollar worldwide.
BRICS Countries Plan to Introduce Their Own Stablecoins
On Tuesday, plans related to the stablecoin efforts of BRICS countries became visible on online platforms. This accelerates their efforts to reduce dependency on the US dollar. It’s not surprising that the commodity-rich BRICS countries expect their stablecoin to be backed by gold.
The idea of developing a stablecoin for international trade had already been expressed by BRICS. Russian Deputy Foreign Minister Sergei Ryabkov also mentioned this idea, highlighting the advantages stablecoins could bring to the group. Ryabkov stated that financial systems need to merge and that stablecoin could be a significant solution in this context.
As BRICS’s economic status rises, developing its own stablecoin could contribute to the economic development of its member countries. This step could also pave the way for the group to create their own local currencies.
Effort to Support Non-Dollar Trade
When BRICS launches its stablecoin, it intensifies efforts to support non-dollar trade. The race to reduce global trade’s dependency on the US dollar could quickly approach with BRICS’s stablecoin initiative. This move could be a significant development supporting the idea of a “multipolar world” as it aims to end the dependency on the US dollar in international trade.
Speculations suggest that considering the large reserves of BRICS countries, the stablecoin will be backed by gold. If the stablecoin is backed by gold, its infrastructure is expected to be robust.
XRP Advocates Dream Big
An XRP advocate hinted that the stablecoin thought to be issued by BRICS could benefit from XRP. These claims show that BRICS’s step to create its own stablecoin might not be a coincidence, as the company behind XRP, Ripple, also plans to launch a stablecoin on the XRP Ledger later this year.
Another XRP user mentioned that BRICS’s stablecoin initiative is a strong step towards creating a decentralized market. As efforts for non-dollar trade continue, this movement could benefit every participating economy.
