According to a Russian IMF representative, BRICS is ready to offer an alternative to the US Dollar amid the currency’s collapse, and the bloc must prepare for such an instance. The alliance, consisting of Russia; India, China; Brazil; South Africa; and supporting nations, has been working to abandon the US Dollar for some time.
The BRICS bloc is working to develop a new BRICS currency to replace the US dollar, alongside local currencies between nations. In an interview with RIA Novosti published on Friday, Russian IMF rep Alexey Mozhin noted that the shortcomings of the current financial system are becoming more apparent. Furthermore, he points out that many publications have started to mention BRICS as a group that will offer a successful alternative to the greenback.
“Such a proposal is being discussed,” the director told RIA Novosti. “In the event of the collapse of the dollar and the international monetary system, it will be necessary to turn the said BRICS accounting unit into a real currency, backed by exchange goods.”
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BRICS Currency To Serve As Substitute If US Dollar Collapses
The BRICS bloc has turned to blockchain technology for its brand-new payment system, according to reports. Indeed, its efforts have sought to build a competing currency built on digital assets. The US Dollar is still a ways away from crashing altogether, however, the path is there for BRICS to do damage.
The greenback is still the global reserve, but a mounting US Debt has ensured that it won’t remain a fact forever. Furthermore, support around the BRICS bloc has grown over the past few years, with more countries likely to receive invites to join in 2024. With more support in numbers and finances, BRICS could develop a strong contending currency to fight the US dollar. While it may not win right away, in the long term the US currency’s uncertainty may play a part in its downfall.