BRICS countries Russia and China have teamed up to teach the US dollar a lesson in the international markets. The duo was the first to come up with the idea of creating a new BRICS currency to end the US dollar’s global supremacy. The White House pressing sanctions against developing countries is what led to the idea of de-dollarization to begin with. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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Formation of BRICS Currency Important To Uproot US Dollar Supremacy
Russian diplomat Yury Ushakov confirmed that the formation of a new BRICS currency is important to uproot the US dollar. His comments tow in line with the BRICS alliance that aims to put local currencies first for cross-border transactions. Ushakov stressed that BRICS believes in creating an independent payment system without the need for the US dollar.
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He indicated that the new BRICS currency payment system will incorporate blockchain technology and digital financial assets. “We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain,” Ushakov said.
The diplomat explained that the BRICS payment system will be convenient for governments, businesses, and common people alike. The alliance wants to make the payment system accessible to all and dent the prospects of the US dollar. “The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics,” he said.
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The development comes at a time when Russia passed a legislature allowing global trade settlements in digital financial assets (DFAs). BRICS is using every idea under its sleeve even before launching its new currency to challenge the US dollar. The prospects of the BRICS currency will most likely be discussed in the 16th summit in Russia’s Kazan region.