- The coalition nations want to trade without relying on the U.S. dollar.
- Ripple’s XRP may support BRICS with its fast and cheap payments.
- A stablecoin from BRICS could strengthen its financial independence.
BRICS nations have agreed to settle international trade using their national currencies. This agreement signals a shift away from Western monetary frameworks. Russian President Vladimir Putin announced that BRICS is developing a blockchain-based billing platform.
This agreement will allow Brazil, Russia, India, China, and South Africa to trade without interference from traditional Western authorities. This decision shows the team’s goal for financial independence and reducing reliance on the U.S. dollar.
XRP Ledger’s Role in BRICS Financial Strategy
Ripple’s XRP ledger is gaining attention because it processes transactions quickly and has low fees. Unlike traditional systems like SWIFT, which processes about $5 trillion daily but has slower transaction speeds and higher costs, XRP can complete transactions in 3 to 5 seconds. Thus, XRP’s speed and cost efficiency make it a strong option for global trade.
However, Ripple has not yet matched SWIFT’s industry dominance. SWIFT serves over 11,000 financiers. Ripple’s growing relationships with institutional investors show increasing confidence in its technology. Furthermore, XRP’s liquidity and stability make it attractive for BRICS. Analysts even compare XRP to gold because of its advantages as a savings reserve.
BRICS Stablecoin Plans and Financial Independence
Additionally, the cooperation is thinking about creating a stablecoin to help with international trade. Russia’s Deputy Foreign Minister Sergei Ryabkov supports this idea and sees it as a way to unify the commerce sectors of BRICS. A secure exchange rate could help reduce reliance on the U.S. dollar and strengthen its financial independence.
Speculation suggests that this stabilised token could possibly be backed by gold. BRICS nations hold large gold reserves, which could add security and stability to the currency. This stablecoin would be a credible alternative for global trade and would also help BRICS create stronger economic ties.
Potential Collaboration Between Ripple and BRICS
The company plans to launch its own stablecoin on the XRP ledger later this year, raising questions about possible collaboration with BRICS. Some analysts think BRICS might use Ripple’s stablecoin technology. The timing of BRICS’s financial plans and Ripple’s upcoming stablecoin release has led to speculation about future cooperation. However, there are no formal agreements confirmed at this time.
This potential collaboration could change global financial dynamics and support BRICS’s efforts to reduce reliance on traditional Western financial systems.
The post BRICS Continues To Take Major Steps to Create Its Own Payment System appeared first on Crypto News Land.
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