A new, independent payment system has been approved for BRICS, signaling a potential move away from the US dollar. There is speculation about whether this system will incorporate cryptocurrencies such as Bitcoin or Ripple’s XRP for global settlements.
Russian President Vladimir Putin has given the green light to an alternative currency strategy for the BRICS group, marking a significant development. This decision suggests a shift towards utilizing Ripple’s XRP for cross-border payments, indicating a shift towards a more self-reliant financial framework.
Unveiled at the SPIEF 2024 Conference, the innovative payment system aims to bolster national currency sovereignty and protect against political and sanction pressures by leveraging blockchain technology for security and resistance to external interference.
The system, designed to be digital, equitable, and cost-effective, prioritizes inclusivity for governments, businesses, and the public. Additionally, BRICS nations are expanding banking networks and increasing trade in national currencies, with plans to diversify currency usage beyond the US dollar through the Contingent Reserve Arrangement.
Key developments of the system include:
1. Blockchain Integration: The system will integrate blockchain technology to ensure a secure and resistant platform against external manipulations.
2. Focus on Inclusivity and Efficiency: The system is designed to be fully digital, fair, and cost-effective, catering to the needs of various stakeholders in a politically unbiased manner.
3. Expansion of Banking and Currency Use: BRICS is actively working to strengthen banking networks and promote trade in national currencies, aiming to reduce dependency on the US dollar through the Contingent Reserve Arrangement.
The choice between Bitcoin and Ripple’s XRP is crucial due to their transaction efficiency and cost-effectiveness. Currently, Ripple’s XRP is trading at $0.498, showing potential suitability for the system despite fluctuations in its value.
These strategic steps mark a significant move towards economic independence for BRICS, highlighting their adoption of advanced technological financial solutions.