Danger for the dollar! The BRICS confirm the development of a common currency!
It was known that the BRICS were considering a currency. This time, it seems it’s really official. In a strategic move aimed at reshaping the global economy, the BRICS countries are actively working on creating a new currency. This development could mark a major turning point in the fight against the dominance of the US dollar and have profound repercussions on international trade. As emerging economies seek to reduce their dependence on the dollar, this initiative stands out as a significant challenge to the established economic order, with potential implications for the entire global financial system.
Towards a New Global Economic Balance
No respite for the BRICS countries, these nations are resolutely committed to countering the dominance of the dollar and the United States. As part of the dedollarization process they have initiated, the development of a new common currency has entered its active phase. Kazem Jalali, Iran’s ambassador to Russia, confirmed this initiative by stating: “Russia and Iran are working together on creating a new single currency”. Currently, more than 60% of bilateral trade between these two countries is conducted in rubles or rials, highlighting the close economic collaboration between these nations and their willingness to reduce their dependence on the US dollar.
This initiative is part of a broader BRICS strategy to strengthen their economic independence in the face of dollar fluctuations. Since Iran joined the alliance in 2023, the group has stepped up its efforts to establish a viable alternative to the current global financial system dominated by the dollar. The creation of this common currency could facilitate intra-BRICS trade, offer greater economic stability to its members, and protect them against international economic disruptions. This approach demonstrates the BRICS’ determination to reshape the global economic order by proposing innovative and cooperative solutions.
The Crypto Path Excluded?
The decision by the BRICS to develop a common currency marks a significant turning point in the global economic landscape. In March, various sources revealed that the BRICS were instead focusing on creating a digital payment system using blockchain technology. Subsequently, Ripple’s XRP cryptocurrency was mentioned to play a central role in the BRICS’ monetary project, particularly through a gold-backed stablecoin to facilitate digital transactions between member countries. While initially, the option of a cryptocurrency had been considered, this path now seems to have been excluded.
In any case, a BRICS currency could seriously challenge the US dollar, reduce global dependence on this currency, and promote diversification of international reserves. As for blockchain technology, although it shows promise, it still needs to prove its viability on a large scale for intergovernmental transactions.
