Soon the adoption of a common currency for the BRICS countries?

For some time, the BRICS countries, including Russia and China, have been maneuvering to break free from the US dollar. Recently, the Middle Kingdom formalized an agreement with Brazil to trade from state to state, without going through the dollar. This desire for financial independence could materialize through the adoption of a digital currency.

The choice of a digital currency is not excluded

The BRICS wants to get rid of American monetary supremacy in international transactions. Some countries like Brazil and China have already started part of this project. But the dynamic could accelerate, according to Alexander Babakov, the vice-president of the lower house of the Russian Parliament.

According to recent statements of the Russian policy, the BRICS countries would work on the creation of a common currency. A political choice that would be justified by the need for these countries to weigh more in the international economy.

The choice to implement a common currency for the BRICS countries would be, according to him, a strategy that prioritizes the interests of this alliance. A politic “who does not defend the dollar or the euro” and could drive the creation of a new world economic order.

Babakov did not provide any details regarding the type of currency potentially envisaged. But this could well be a digital currency. An option that is coherent and quite plausible when you know the interest that Russia and China have for these assets.

We also know the importance that digital payments seem to take in the current circumstances of the global economy. A country like Brazil, for example, is progressing by leaps and bounds in the crypto sector.

In early December 2022, the country to legalize payments in digital assets. And this dynamic in favor of cryptos should strengthen with the coming to power of President Lula.

These trends also seem similar for countries like Russia and China for example. Both had been, for a long time, fiercely opposed to the development of cryptos on their respective territory. But the war in Ukraine has reshuffled the cards for Russia. Meanwhile, China seems to want to revise its stance on cryptos lately.

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