Crypto Community Responds to BRICS’ Consideration of Stablecoin for Trade Settlement

BRICS is stepping up its efforts to lessen its dependence on the US dollar by exploring the creation of a stablecoin for international trade. This initiative, highlighted by Russian Deputy Foreign Minister Sergei Ryabkov, aims to unify the financial systems of BRICS nations—Brazil, Russia, India, China, and South Africa. Ryabkov emphasized that a stablecoin might be essential for this integration, hinting at its potential to be backed by gold, given the significant gold reserves of the BRICS countries.

The move towards developing a BRICS stablecoin aligns with the bloc’s broader goal of “de-dollarization” in global trade, reflecting its members’ increasing economic influence. This could lead to the establishment of a native currency for the bloc, further solidifying its economic autonomy and promoting a “multi-polar world” where reliance on the US dollar is diminished.

Speculation has also arisen around the technological foundation for the BRICS stablecoin. An XRP enthusiast suggested that the bloc could leverage the XRP Ledger for its stablecoin, especially as Ripple plans to launch its own stablecoin later this year. This potential partnership could provide a robust platform for BRICS’ ambitions, combining their strategic economic goals with advanced blockchain technology.

Overall, the development of a BRICS stablecoin represents a significant step towards redefining the global financial landscape, potentially reducing the dominance of the US dollar in international trade and increasing the financial sovereignty of the BRICS nations.