Russia has unveiled plans to launch two State-linked cryptocurrency exchanges to integrate digital payments for trade settlements. The US sanctions have made Russia find alternative payment methods to keep its economy afloat. The two cryptocurrency exchanges will operate in two different cities, one in Moscow and the other in St. Petersburg. In addition, BRICS member Russia also plans to launch a new stablecoin that will be linked with the Chinese yuan.
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The bold plan from BRICS member Russia is to peg the Chinese yuan with the new cryptocurrency-based stablecoin at a 1:1 ratio. This makes its price remain stable with no volatility and is relatively safe to initiate transactions with no concerns of fluctuating prices.
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BRICS: Russia Aims To Peg the Chinese Yuan With the New Stablecoin
The Chinese yuan-linked BRICS stablecoin will help Russia bypass the US sanctions and end dependency on the dollar. Therefore, the Russian ruble and the Chinese yuan will benefit the most when trade is settled in the new payment mechanism. The US dollar will play no role in the payment system making local currencies take the significant share of settlements.
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Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. China is advancing to make the Chinese yuan the sole global currency and Russia is helping the Communist country to achieve the milestone. Also, the first step was de-dollarization, and the second is going to be the new Chinese yuan-linked BRICS stablecoin.
The US dollar could face severe challenges in the coming years as the de-dollarization agenda is gaining steam. Additionally, the BRICS alliance is pushing the Chinese yuan at the forefront of all cross-border transactions. Many developing countries have already started settling a portion of their trade in the Chinese yuan and not the US dollar.