BRICS: Russia Calls for Development of a Digital Trade Currency

Joshua Ramos
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As the BRICS economic alliance continues to discuss its alternatives to the US dollar, Russia has called for the development of one digital trade currency for the bloc. Indeed, Russian leaders have reportedly sought out the use of digital assets in trade settlements.

A new report states that Russian Chamber of Commerce members have discussed the use of this digital currency for BRICS countries and “friendly” nations. Moreover, the alliance had previously discussed an alternative currency pegged to gold for use by the collective. However, blockchain technology could provide the answer.

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BRICS Seeking Digital Asset for Global Trade?

The growing popularity of Central Bank Digital Currencies (CBDC) and crypto as a whole has propelled government implementation of digital assets. With its growing prominence, one of the world’s most important economic blocs may be able to use its technology. Especially as it seeks to move away from the overwhelming use of the greenback internationally. 

Specifically, as the BRICS bloc continues to grow, Russia has called for the development of a digital trade currency. Subsequently, the fita would be an alternative to the US dollar for global trade settlements. The bloc has been seeking out a fiat alternative for the collective to use in such instances. 

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Source: Alexandr Demyanchuk / Sputnik / AFP via Getty Images

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Russian officials have stated that the Chamber of Commerce members have “proposed” the idea of using digital financial assets for international payments. Moreover, Russia has observed digital assets as a potential answer for cross-border payments between bloc members. 

The implementation of such digital assets would lessen international reliance on the greenback. Subsequently, it would align with the already-implemented de-dollarization efforts of the economic alliance. For Russia, this is of the utmost importance considering the Western sanctions placed upon them following the Ukrainian military conflict.