BRICS is pressing forward with its plans to introduce a stablecoin for international settlements and reduce the dominance of the US dollar. The XRP community has been advocating for Ripple’s XRP settlement platform as the ideal choice for the bloc to build, launch, and develop its digital assets.
BRICS has officially announced its intention to construct and release its own stablecoin. The aim is to use this digital asset for settling international payments and to decrease the influence of the US dollar on the global stage. There are speculations that the stablecoin will be backed by gold.
A recent report reveals that two prominent BRICS members, Russia and China, have signed a trade deal worth $260 billion using their respective local currencies. This deal, with 95% of it settled in Yuan, indicates a shift towards using their own currencies in international trade.
BRICS countries, including Egypt, Ethiopia, Iran, and the UAE, are intensifying their efforts to distance themselves from the US dollar. BRICS’ expansion with influential countries like Saudi Arabia and the UAE strengthens their position in the oil market. This, combined with trade settlements in their own currencies, establishes a more independent economic bloc with advantages that go beyond just financial benefits.
Previously, the crypto community had speculated that BRICS might adopt Bitcoin for international settlements. Bitcoin, 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 now started advocating for Ripple’s XRP settlement platform as the best option for building, launching, and developing this stablecoin. The central bank digital currency (CBDC) platform, which was launched a few years ago, has been thoroughly tested, and Ripple, the issuer of XRP, has confirmed its collaboration with at least 20 central banks to develop their digital assets.
While the Ripple platform offers a well-tested solution, the BRICS alliance has already expressed its intention to develop its own blockchain-based payment system. Yury Ushakov, the Kremlin aide to Russia, provided further details on this development. He explained that creating the payment system is a step towards fulfilling the organization’s objectives and is in line with the BRICS Contingent Reserve Arrangement (CRA) framework.
The BRICS Contingent Reserve Arrangement (CRA) was established in 2015 by the BRICS countries to safeguard the organization against potential long-term global liquidity crises. The framework offers liquidity and precautionary tools, primarily in response to short-term balance of payments pressures.
The alliance has committed to launching the platform in the coming months, raising the possibility of a collaboration with Ripple and XRP.
As of now, XRP is trading at $0.51, experiencing a 6% drop in the past week and minimal change in the past 24 hours.