BRICS, the alliance of Brazil, Russia, India, China, and South Africa, has announced its plans to develop a stablecoin, sparking speculation that they may consider utilizing Ripple’s XRP. Ripple already offers a central bank digital currency (CBDC) platform that assists central banks, governments, and financial institutions in creating their own stablecoin.
Following the confirmation of BRICS’ stablecoin project, there is speculation within the community that Ripple’s XRP could play a role in this initiative. The Russian Minister of Foreign Affairs has confirmed that the alliance intends to launch a stablecoin to facilitate international transfers.
Given Ripple’s reputation for fast cross-border payments, it could potentially become a major player if the BRICS countries proceed with their de-dollarization stablecoin project, as suggested by Sergei Ryabkov’s statement. The XRP community believes that XRP could act as a bridge between the currencies of the member countries. Ripple’s On-Demand Liquidity product, now known as Ripple Payments, has been praised by the IMF and the World Bank for its revolutionary nature.
In 2024, China and Russia aim to conduct over $260 million in trade exchanges without using the US dollar. Similar arrangements involving billions of dollars in value have been made by other countries, all with the goal of reducing the international influence of the dollar.
The Russian minister has revealed that BRICS plans to develop its own platform to create and issue a gold-backed stablecoin. However, there is recognition within the community that Ripple’s technology would be better suited for this purpose.
While it is still early in the development of the BRICS stablecoin project, and any involvement of XRP is speculative at this point, XRP’s potential role in BRICS transactions could be a significant development for the cryptocurrency. This could lead to widespread adoption and drive demand and value for XRP.
As of now, XRP’s price has increased by 3% and has experienced a weekly surge of 6%. Currently trading at $0.54, investors are optimistic about retesting short-term resistance levels at $0.55 and $0.60.
XRP’s price performance has been suppressed in recent years, largely due to the ongoing legal battle between Ripple and the SEC. The SEC alleges that XRP is a security and has sued Ripple for its issuance. The case is nearing its conclusion, and the latest dispute revolves around a witness from the SEC’s Enforcement Division. Once the case is resolved, investors expect XRP to rally and potentially reach its all-time high of $3.84 reached in 2018.