BRICS is moving forward with plans to launch a stablecoin for international settlements as well as lessen the dollar’s international influence.
The XRP community has touted Ripple’s XRP settlement platform as the best option for the bloc to build, launch, and develop its digital assets.
BRICS has confirmed plans to build and launch their stablecoin. The bloc aims to use the digital asset to settle international payments and use the asset to lessen the U.S. dollar’s influence in the world. There is speculation that the stablecoin will be backed by gold.
A recent report shows, that two of the leading BRICS members, Russia and China have signed a $260 billion trade deal using their local currencies. The recent deal settled 95% in Yuan, highlighting a shift towards using their own currencies in international trade.
BRICS countries, including Egypt, Ethiopia, Iran, and UAE, are stepping up efforts to move away from the US dollar. BRICS’ expansion with powerhouses like Saudi Arabia and UAE bolsters their influence in the oil market. This, coupled with deals settled in their own currencies, creates a more independent economic bloc with benefits beyond just financial.
In the past, the crypto community has speculated that BRICS could adopt Bitcoin, utilizing it for international settlements. Bitcoin, the world’s first decentralized digital currency, offers financial independence and autonomy from traditional financial systems. Bitcoin adoption would usher in a more decentralized and multipolar global financial landscape.
BRICS Eyes Ripple and XRP
The XRP community has begun touting Ripple’s XRP settlement platform as the best option for building, launching, and developing this stablecoin. The CBDC platform launched a few years ago has been tried and tested, with XRP issuer, Ripple confirming a working partnership with at least 20 central banks to develop their digital assets.
While the Ripple platform would offer a well-tested platform, the BRICS alliance has already revealed that it is seeking to build its blockchain-based payment system.
As CNF reported, Yury Ushakov, the Kremlin aide to Russia, expanded on the new development. Ushakov explained that the decision to create the payment system is an attempt to further its commitment to the organization’s movement. He noted that the move is in line with the BRICS Contingent Reserve Arrangement (CRA) framework.
Established in 2015 by the BRICS countries, the BRICS Contingent Reserve Arrangement (CRA) is a system designed to protect the organization from a global liquidity crisis that may arise in the long term. The framework was designed to offer liquidity and precautionary tools. The CRA was mainly created in response to the potential short-term balance of payments pressures.
The alliance has promised to launch the platform in the coming months raising the possibility of a collaboration with Ripple and XRP.
At the time of writing, XRP is trading for $0.51 after a 6% drop in the past week and a marginal change in the past 24 hours.
