BRICS member Russia is using all methods to bypass the US sanctions to keep its economy afloat. In the latest advancement to safeguard its economy, BRICS country Russia has officially signed a law to use digital assets for trade settlements. Digital Financial Assets (DFAs) will be used to settle cross-border transactions and currencies like the US dollar will not be incorporated. While the US is trying to limit Russia’s growth through sanctions, Russia in turn is dampening the US dollar’s prospects.
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The BRICS bloc is using all means to cut ties with the US dollar and protect their local currencies and native economies. The usage of digital financial assets is among the new advancements used by BRICS to challenge the US dollar’s hegemony. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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The US, through sanctions, put pressure on global banks and disallowed them from disbursing payments to Russia. The move added pressure on Russia’s economy and the country has found an alternative way through digital assets to survive. The development indicates that BRICS is using all options up its sleeve to overcome the challenges thrown by the US.
BRICS: Russia Approves Usage of Digital Assets For Trade
Russian lawmakers approved the draft legislation that allows digital financial assets to be used as global trade settlements. Moreover, the US cannot stop the flow of digital assets as it did to stop the country from accepting the dollar. The move also gives Russia and BRICS a freewill, making the country bypass US sanctions to support its native economies.
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“Today, all settlements between our organizations and foreign ones (BRICS) go through the banking system. And accordingly, these settlements and interactions are visible, including to our enemies,” said Anatoly Aksakov, Head of the Financial Committee in Russia’s Lower House of Parliament, the State Duma to Reuters.