The BRICS alliance is working towards the formation of a new payment system to end reliance on the US dollar. The bloc wants to dim the lights on the USD and challenge the currency’s dominance in global trade and transactions. BRICS member Russia is also advancing in creating digital currencies (CBDC) in the ruble with the help of blockchain technology. The move will help its economy stay afloat amid the sanctions pressed by the White House.
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Read here to know how many sectors in the US will be impacted if BRICS ditches the dollar for trade. BRICS is now looking to equip digital currencies to its benefit, as trade settlements would be smoother and safer without the interference of the US dollar.
BRICS: 134 Countries Working Towards The Formation of Digital Currencies
The Atlantic Council published a recent report showing that 134 countries around the world, including BRICS, are building digital currencies. All the CBDCs are currently in testing mode and the pilot batches are being run by their respective central banks. Out of the 134 countries, 66 nations have reached advanced stages in testing CBDCs.
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“Our new research shows that 134 countries (including BRICS) are now exploring a CBDC, representing 98% of global GDP,” wrote the Atlantic Council. In addition, “66 countries are now in the advanced phase of exploration, which includes the launch, pilot, or development stages,” read the report. BRICS members India and Russia are now running the second batch of testing the digital currencies.
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“As of September 2024, every G20 country is exploring a CBDC,” wrote the Atlantic Council. “With 19 of them in the advanced stage of CBDC development. Japan, India, Australia, South Korea, and Turkey are among the 13 G20 countries piloting CBDCs. While new projects were introduced in France, Italy, and Indonesia,” the report read. Therefore, BRICS could end dependency on the US dollar after digital currencies become the norm for trade and transactions.
