The BRICS alliance is looking to launch a new currency to challenge the US dollar and the Euro in the global currency market. Sergey Glazyev, Russia’s former advisor to the President confirmed early this month that BRICS currency is “almost ready” for launch. Reports suggest that the alliance could launch the currency in the 16th summit next year in 2024. The development coincides with Germany’s idea of creating a digital Euro to combat other currencies in the market.
Not just Germany, European lawmakers are looking to create national digital currencies to stay ahead of the changing financial landscape. More than 150 countries are working on CBDC’s and a handful of nations have already launched pilot batches this year. In this article, we will highlight whether Germany plans to launch CBDC to challenge the upcoming BRICS currency.
Will Germany’s CBDC Challenge BRICS Currency?
Germany’s digital Euro is seemingly facing opposition from European lawmakers and the CBDC might not challenge the BRICS currency. Not all of Europe is in agreement with a digital Euro and the European Union is split on the idea of creating a CBDC. While a few countries are pro-CBDC, the others in the EU have piqued that a digital currency is not required.
However, while the West is divided on the prospects of CBDCs, the BRICS bloc has fast-tracked its upcoming currency. BRICS could launch their currency much before the digital Euro is released in the international market. The move puts the BRICS currency ahead of the digital Euro, US dollar, and other leading currencies for global trade.
If Germany, the European Union, and the US, do not counter BRICS currency after launch, the move could prove costly for the West. Read here to know how many sectors in the US will be affected if BRICS stops using the dollar and Euro for trade.