With the BRICS bloc firmly embracing de-dollarization, the bloc has signaled that global finance will completely ditch the US dollar by 2031. Indeed, Russia’s central bank governor noted that the country is set to embrace everyday use of a central bank digital currency (CBDC). That is a digital revolution set to take place throughout the world.
Yet, that leaves the US in a rather different position. The country has consistently stood against the issuance of a CBDC. In May of this year, the US passed a bill that banned the Federal Reserve from issuing the asset. If BRICS are correct about the incoming shift, America could be left behind.
Also Read: BRICS: UBS Predicts the Future of the U.S. Dollar
BRICS Anticipates CBDC Revolution: What it Means for the US Dollar
This week, Russia has surprisingly shifted its digital asset perspective. Indeed, the country passed a bill allowing international trade to be settled in crypto. Moreover, it works alongside Moscow’s development of its very own digital ruble. The nation expects such projects to become a vital economic reality.
The BRICS bloc has hinted that global finance will completely ditch the US dollar by 2031. Specifically, they expect that CBDCs are set to be critical in everyday life. Bank of Russia Governor Elvira Nabiullina reaffirmed that belief in a recent interview.
“In our opinion, there are clear advantages for people to use the digital ruble,” Nabiullina told Russian state media. “We believe that thanks to these advantages, the digital ruble will gradually become a familiar part of our lives within five to seven years.”
Also Read: BRICS: Expert Warns of Economic Crisis, Says US is ‘Going Broke’
The digital ruble’s pilot stage is set to begin on August 15th, following President Vladimir Putin’s signing the currency into law last year. They aren’t the only country taking such action. China and India are enacting similar policies.
This points to a world transitioning into a digitized age. These digitized currencies could vary well skyrocket in use cases. With the US refusing to create such an asset, they risk falling behind. That lag in development could take a very real toll on the US dollar and its global standing.