The BRICS alliance has announced its plans to develop a stablecoin, sparking speculation that they could adopt Ripple’s XRP. Ripple offers a dedicated platform for central banks, governments, and financial institutions to build their own stablecoin. The confirmation of BRICS’ stablecoin project has led to discussions about the potential use of XRP. The Russian Minister of Foreign Affairs has stated that the stablecoin will be launched to facilitate international transfers.
If the BRICS countries proceed with their de-dollarization stablecoin initiative, Ripple, with its reputation for instant cross-border payments, could play a major role. The XRP community believes that XRP could serve as a bridge between the currencies of the member countries. Ripple’s On-Demand Liquidity product, now known as Ripple Payments, has been recognized by the IMF and the World Bank for its revolutionary capabilities.
China and Russia have set a goal to conduct over $260 million in trade exchanges without using the US dollar by 2024. Other countries have also formed similar agreements involving billions of dollars in value, all in an effort to reduce the international influence of the dollar.
The Russian minister has revealed that BRICS intends to develop its own platform for the creation and issuance of a gold-backed stablecoin. However, many in the community believe that Ripple’s technology would be better suited for this purpose.
It is still early in the development of the BRICS stablecoin project, and any potential involvement of XRP is purely speculative. However, if XRP does play a role in BRICS transactions, it could be a significant development for the cryptocurrency, leading to widespread adoption and increased demand and value.
As of now, XRP has experienced a 3% increase in value, continuing its 6% weekly surge. Trading at $0.54, investors are optimistic about testing short-term resistance levels at $0.55 and $0.60.
In recent years, the price of XRP has been suppressed due to the ongoing SEC v. Ripple case. The SEC has alleged that XRP is a security and has filed a lawsuit against Ripple for issuing the cryptocurrency. The case is nearing a conclusion, and Ripple recently challenged a witness from the SEC amid a decline in XRP market volatility.
Once the case is resolved, investors expect that XRP will rally and potentially reach its all-time high of $3.84, which was achieved in 2018.