BRICS: Digital currency in the fight against the dollar!

BRICS: Digital currency in the fight against the dollar!

In a bold move against Western dominance, the BRICS alliance of Brazil, Russia, India, China and South Africa is targeting the next big coup: the introduction of central bank digital currencies (CBDCs) to de-dollarize their trade relationships. Since 2022, the powerful economic alliance has been working to reduce the influence of the US dollar. Their latest event, the BRICS Summit 2024, could be the start of this digital revolution.

The vision of a greater presence of domestic currencies is a central part of the BRICS strategy. Nevertheless, the alliance's most recent meeting was disappointing as President Vladimir Putin put a blockade on an explosive blockchain-based payment system. However, he assured that there would be no new trade infrastructure project, dampening hopes of a single BRICS currency. But the dreams of a digital future are far from over with the introduction of 'BRICS Pay'.

BRICS entry into the digital currency world?

Despite the discouraging evidence at the summit, there are many signs that the BRICS group may still focus on the development of CBDCs in the coming year. Launching Central Bank Digital Currencies is a Herculean task, but one that could have enormous global impact. The political collective has long been discussing closer cooperation between central banks to create a network of digital assets that serves as a trading platform for them.