BRICS, the alliance of Brazil, Russia, India, China, and South Africa, is making progress in its plans to introduce a stablecoin for international settlements, with the aim of reducing the influence of the US dollar. The XRP community has identified Ripple’s XRP settlement platform as the ideal option for BRICS to build and launch its digital assets.
BRICS has officially confirmed its intention to develop and launch its stablecoin, which will be used for international payments and to decrease the dominance of the US dollar. There are speculations that the stablecoin may be backed by gold.
A recent report reveals that two prominent BRICS members, Russia and China, have signed a $260 billion trade agreement using their local currencies. The majority of the settlement, 95%, was conducted in Yuan, indicating a shift towards using their own currencies in international trade.
Moreover, BRICS countries, including Egypt, Ethiopia, Iran, and the UAE, are intensifying their efforts to reduce their reliance on the US dollar. The inclusion of powerhouses like Saudi Arabia and the UAE strengthens BRICS’ influence in the oil market. This, combined with settlements in their own currencies, creates an economically independent bloc with advantages that go beyond financial matters.
In the past, there has been speculation within the crypto community that BRICS might consider adopting Bitcoin for international settlements. Bitcoin, as the world’s first decentralized digital currency, offers financial independence and autonomy from traditional financial systems. The adoption of Bitcoin would lead to a more decentralized and multipolar global financial landscape.
The XRP community has started to advocate for Ripple’s XRP settlement platform as the optimal choice for developing and launching BRICS’ stablecoin. Ripple’s central bank digital currency (CBDC) platform has been successfully tested, and the company has confirmed partnerships with at least 20 central banks to develop their digital assets.
While the Ripple platform offers a proven solution, the BRICS alliance has already expressed its intention to build its own blockchain-based payment system. Yury Ushakov, the Kremlin aide to Russia, elaborated on this development, stating that the decision to create the payment system aligns with BRICS’ commitment to the organization’s movement. He explained that it is in accordance with the BRICS Contingent Reserve Arrangement (CRA) framework.
The BRICS Contingent Reserve Arrangement (CRA) was established in 2015 to protect the organization from potential long-term global liquidity crises. The framework offers liquidity and precautionary tools, primarily to address short-term balance of payments pressures.
The alliance has announced plans to launch the payment system in the coming months, raising the possibility of collaboration with Ripple and XRP.
As of now, XRP is trading at $0.51, experiencing a 6% decrease in the past week with minimal changes in the past 24 hours.