Ever since Russia legalized crypto payments, all eyes were on how that would integrate into its prominent economic alliance. With the bloc’s payment system on the way, digital assets could play a huge role. Indeed, BRICS crypto payments could be key in overtaking the US dollar.
The group has not been shy about its de-dollarization hopes. Since 2022, it has sought to decrease international reliance on the greenback. With Russia facing increased sanctions, alliance trade outside of the dollar became a necessity. As crypto integrations take place, efforts to ditch it could hit overdrive.
Also Read: BRICS: Russia To Officially Use Cryptocurrency For Trade Settlements
BRICS Crypto Payments May Create Path to Completely Ditch the US Dollar
Crypto is set to be a critical part of BRICS. With Russia moving to legalize the form of payment, trade settlements using the asset should skyrocket. Moreover, it could create clear avenues to continue creating a multipolar economic shift on a global scale.
It was revealed that the US dollar reserve held by central banks has fallen to 59%, according to the Atlantic Council. Indeed, that has been a notable decline since 2001, when the BRICS bloc was formed. Yet, that is only expected to continue declining amid the alliance’s actions to lessen its role.
Additionally, the yuan recently overtook the dollar in cross-border transactions for the time in China’s history. While the renminbi accounts for 48% of commerce, the greenback fell to 46.7%. Now, the BRICS bloc is looking for its crypto payments to create even more incentive to ditch the US dollar.
Also Read: BRICS: Payments in Chinese Yuan Surpasses the US Dollar by 2.5%
In Russia, the yuan accounts for 42% of all foreign currency trades. Alternatively, the dollar only made up around 39.5%, according to reports. That is something that Moscow is hoping to curve with its foray into cryptocurrencies.
The incoming payment system could be set to introduce blockchain technology infrastructure. That could facilitate even greater crypto adoption amid alliance trading. With Russia reportedly developing its own stablecoin and cryptocurrency exchanges, it could transform into a hub for digital asset trade settlements.
That would be a critical blow to the greenback. Conversely, the upcoming 2024 BRICS Summit should provide important insight. Indeed, it could be the setting for major announcements regarding the alliance’s crypto usage.