The BRICS consortium is considering launching a stablecoin for international settlements to reduce the influence of the US dollar. Russian Deputy Foreign Minister Sergei Ryabkov mentioned that the economic coalition of Brazil, Russia, India, China, and South Africa is exploring the possibility of introducing a stablecoin in the near future.
While details about the stablecoin are still unclear, there is speculation that it may be backed by gold instead of fiat reserves. Some believe that BRICS could utilize Ripple’s XRP platform for the stablecoin, while others suggest that the coalition might develop its own platform.
The main goal behind the stablecoin is to improve cross-border trade between BRICS member states and potentially pave the way for a unified currency among them. Although there have been discussions about launching a joint central bank digital currency (CBDC) within BRICS, concrete plans have not yet materialized.
Russia, which currently leads the BRICS coalition, has experience with stablecoins for cross-border trade and is expected to leverage this knowledge in establishing a common digital currency for BRICS countries.
In addition to facilitating cross-border transactions, BRICS nations are also interested in reducing the impact of economic sanctions imposed by Western powers. Russia and China, in particular, have faced sanctions and view digital currencies as a way to bypass these restrictions.
Overall, the move towards a stablecoin within BRICS reflects a shift towards digital technologies and blockchain in international finance. It also underscores the consortium’s efforts to promote economic cooperation and independence from traditional financial systems.