BRICS Considers Implementing Gold-Backed Currency and Payment System

BRICS, the economic bloc consisting of Brazil, Russia, India, China, and South Africa, is reportedly considering announcing a gold-backed currency at its upcoming summit in October 2024. This move could challenge the dominance of the U.S. dollar in global trade and finance as the bloc explores alternative financial structures to reduce dependency on Western economic systems.

BRICS to Explore Crypto and Blockchain for Cross-Border Settlement

Such a development marks a bold step towards financial sovereignty for BRICS nations, potentially offering a more secure and reliable currency for international trade, particularly in an era of increasing economic volatility.

In addition to the gold-backed currency, BRICS is reportedly exploring the use of blockchain technology and cryptocurrencies for cross-border settlements. This aligns with the bloc’s broader goal of creating a more independent financial infrastructure. Russia, in particular, has been at the forefront of these efforts, initiating steps to implement blockchain and crypto solutions for international transactions. 

If the bloc successfully implements a gold-backed currency and embraces blockchain for cross-border transactions, it could reshape the global financial landscape, providing a formidable alternative to the current dollar-centric system.

BRICS Currency Gains Momentum

In May, the BRICS nations—Brazil, Russia, China, India, and South Africa — announced the development of a new currency amid the de-dollarization movement. This currency will facilitate cross-border trade among them.

As the discussion of de-dollarization grows, the BRICS coalition has formulated a comprehensive strategy to establish a diverse and balanced world, with Russian President Vladimir Putin spearheading the project. Brazil’s President shares the same sentiment, questioning why all countries depend on the dollar for trade. Likewise, voices advocating for alternatives to the dollar are gaining prominence in international discussions.

Will the Payment System to Feature XRP

President Putin confirmed the BRICS plans to launch a new payment system two months ago. As reported by TheCoinRise, XRP, a digital currency known for its fast transaction speeds and low costs, is under consideration as a currency within the payment scheme. 

Interestingly, the proposal to incorporate XRP into the bloc’s payment system underscores the global acceptance and legitimacy of cryptocurrencies.

Furthermore, XRP exploration in this context aligns with the broader BRICS strategy to reduce dependency on traditional Western financial systems and the U.S. dollar. Notably, the inclusion of XRP in the BRICS payment system, once confirmed, could trigger a substantial rally for the coin.