- BRICS Payment System gains traction, challenging U.S. Dollar dominance globally.
- Potential gold-backed currency by BRICS could reshape global financial markets.
- BRICS explores blockchain crypto for cross-border trade while Russia leads crypto adoption.
Just weeks after the BRICS Payment System was announced, it has attracted global interest. A Russian official revealed that 159 countries have shown interest in adopting the system, which might be launched in October. This development is viewed as a reaction to the expected U.S. weaponization of the SWIFT system, especially against nations with tense U.S. relations.
Tech entrepreneur Kim Dotcom also issued a stark warning about the future of the U.S. dollar. In his social media post, he forecasted the diminishing influence of the U.S. dollar, driven by what he perceives as global dissatisfaction with American economic policies.
The payment system is expected to play a key role in the agreement’s trade dealings, enabling transactions without the need for the U.S. Dollar. Russia has already begun setting the foundation for this system, with its Central Bank Governor, Elvira Nabiullina, recognizing the system’s importance as an alternative to SWIFT.
The introduction of the BRICS Payment System could significantly impact global markets, especially if the bloc decides to back the system with a gold-backed currency. Additionally, there are discussions within the coalition about using local currencies for cross-border transactions on a blockchain platform, further challenging the U.S. Dollar’s dominance.
However, the path to de-dollarization presents challenges. The use of multiple local currencies in international trade could complicate transactions, particularly with the BRICS bloc expanding. Despite these hurdles, the alliance is committed to creating an independent payment system, utilizing digital technologies and blockchain to ensure convenience and cost-effectiveness.
Meanwhile, Russia has started integrating crypto assets into its financial system. President Vladimir Putin recently signed a law permitting crypto mining and the use of digital currencies for international deals. However, it remains unclear if the BRICS group will fully embrace crypto, especially considering China’s traditionally cautious stance on digital currencies.
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