BRICS alliance is exploring the idea of an innovative currency and plans to share proposals at the upcoming summit in South Africa. BRICS is an acronym standing for five leading emerging economies—Brazil, Russia, India, China, and South Africa.
Deputy Chairman of Russia’s parliament, Alexander Babakov, claims the plan will initially transition from using domestic currencies in transactions to introducing and circulating a digital or “alternative form of a groundbreaking currency in the near future.” He’s hoping the summit, scheduled for August this year, will show how ready BRICS is to implement this initiative. During the St. Petersburg International Economic Forum event in New Delhi, Babakov stressed the importance of both nations working toward a new form of payment, saying that digital payments could be the most promising and viable. According to Cointelegraph, he feels the currency could benefit China and other BRICS members.
“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”
While it’s tentatively set to be announced this year, this plan has been in motion for quite a while. Back in 2019, members of the bloc were discussing the creation of a new digital currency for a unified payments system. China is already ahead of the game with its central bank digital currency project, and Brazil is right behind them with crypto adoption and legalizing it as a payment method. Meanwhile, the United States continues its war on cryptocurrency, with finance regulators closing in on the embryonic industry.
BRICS will likely become stronger as other nations, such as Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt, intend to become part of this economic bloc. – Steve Sijenyi