According to a recent announcement by Anatoly Aksakov, the Chairman of the Russian State Duma Committee on the Financial Market, the BRICS bloc is actively working on substituting the US dollar with cryptocurrency for trade transactions. Aksakov highlighted the alliance’s efforts to incorporate digital assets instead of traditional fiat currency for global trade.

The BRICS economic coalition has been dedicated to reducing its dependency on the US dollar and promoting the use of local currencies. The introduction of the BRICS Pay system marked a significant step towards developing digital currency solutions. These ongoing initiatives are now propelling the bloc towards a future less reliant on the dollar.

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Transitioning from the Dollar to Digital Assets in BRICS Trade

Over the past year, the BRICS bloc has been actively shaping a more diverse global economic landscape. The expansion to include five new nations during the 2023 annual summit was pivotal in this endeavor. A key aspect of this transformation is the emphasis on conducting trade using local currencies.

In a bold move towards this objective, the BRICS bloc is now aiming to substitute the US Dollar with cryptocurrency for international trade. Russia has emphasized that the bloc serves as a significant platform for phasing out fiat currencies in global transactions.

What sets this initiative apart is the bloc’s commitment to developing its own Central Bank Digital Currencies (CBDC) as alternatives to fiat currencies. In contrast, the Western stance, particularly that of the United States, remains opposed to such endeavors.

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These collective efforts are poised to facilitate the continued de-dollarization of the BRICS bloc. Sergey Ryabkov, the Russian Deputy Foreign Minister, recently highlighted the need for new financial platforms that support the integration of digital assets over fiat currencies.

Ryabkov proposed the concept of a “BRICS Bridge,” which would unify the financial systems of the member countries. This bridge would rely on stablecoins or other digital currency formats to streamline the de-dollarization process among the ten BRICS nations.

However, the absence of the US dollar in any bilateral trade involving the alliance members may raise concerns among nations looking to engage in unilateral trade agreements with the bloc.