BRICS Considers Stablecoin for Trade Settlement

The BRICS consortium is exploring the introduction of a stablecoin to reduce reliance on the US dollar for international trade.

The BRICS consortium’s member nations are considering the introduction of a stablecoin as a means of establishing an alternative to the use of the United States dollar for international trade and remittances.

Sergei Ryabkov, the Deputy Foreign Minister of Russia has divulged the idea for the union to explore stablecoins for international settlements. The disclosure of this information occurred during a recent interview.

BRICS To De-Dollarize Trade With Stablecoin

In addition, the development of a platform named “BRICS Bridge” aims to enhance the interoperability of payments made using Central Bank Digital Currency (CBDC).

Additionally, he discussed the roles that the fiat-backed cryptocurrency will play for the group, including promoting financial cooperation among the nations that are members of the BRICS organizations.

This appears to be a roundabout way for the BRICS countries to finally have their own currency, based on the looks of things. There is still a lack of clarity regarding the extent to which the bloc has progressed with its study and the arrangements for the proposed stablecoin.

In order to pursue de-dollarization, the BRICS Group, which consists of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates has been considering the utilization of other options for a considerable amount of time.

As a result of the recent increases in inflation and the slowdown in economic activity, the de-dollarization movement has gathered a substantial amount of momentum over the past several months.

The group announced a month ago that they would establish an autonomous payment system based on blockchain technology and digital currencies.

According to Yury Ushakov, an assistant to the Kremlin of Russia the primary objective of the alternative payment method is to make it “convenient for governments, common people, and businesses, as well as cost-effective and free of politics.”

This decision by the BRICS Group is noteworthy because it comes at a time when the digital asset ecosystem is experiencing an increase in the utilization of stablecoins.

Stablecoin Market Seeing Immense Adoption Growth

A huge achievement that was not seen since 2022, the stablecoin market has surpassed the $160 million milestone, indicating that it has suddenly risen over that mark.

A week ago, Triple-A, a Singapore-based payments company, took a significant step by announcing its intention to add PayPal’s stablecoin to its range of payment options tailored specifically for merchants.

Ripple, a leading blockchain payments company, has also disclosed its intention to launch its stablecoin, which highlights the growing interest that investors have in the particular asset class.

Because a growing coalition such as BRICS, is now considering the use of stablecoins, the ecosystem is almost certain to experience an increase in the number of people adopting them over time.