Soon the adoption of a common currency for the BRICS ?

For some time, the BRICS countries, including Russia and China, have been working to move away from the US dollar. Recently, China formalized an agreement with Brazil to trade state to state, without using the dollar. This desire for financial independence could be realized through the adoption of a digital currency.

The choice of a digital currency is not excluded

The BRICS wants to get rid of the American monetary supremacy in international transactions. Some countries such as Brazil and China have already set in motion part of this project. But the process could gain speed, according to Alexander Babakov, State Duma Deputy Chairman.

According to recent statements by the Russian politician, the BRICS countries are working on the creation of a common currency. A political choice that would be justified by the need for these countries to have a greater influence in the international economy.

The BRICS bloc could be mulling its own currency as members increase efforts to distance themselves from US dollar hegemony. China and Brazil this week cut USD out of trade between the two countries. https://t.co/k6lD2Kox8U

— Cointelegraph (@Cointelegraph) March 31, 2023

The choice to develop a common currency for BRICS countries would be according to him a strategy that prioritizes the interests of this alliance. A policy with which “composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro. But rather forms a new currency competent of benefiting our shared objectives.” That could drive the creation of a new world economic order.

Babakov did not provide any details about the type of currency potentially under consideration. But it could well be a digital currency. An option that is consistent and quite plausible when we know the interest that Russia and China have for these assets.

We also know how important digital payments seem to be in the current circumstances of the global economy. A country like Brazil, for example, is making huge progress in the crypto sector.

In early December 2022, the country legalized payments in digital assets. And this dynamic in favor of cryptos is expected to grow with President Lula coming to power.

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