The BRICS bloc is set to meet for its annual summit this October in Russia. There, the topic of a new BRICS currency will be up for discussion. Amid the alliance’s de-dollarization efforts, the group is reportedly turning to blockchain technology for its brand-new payment system. The competing currency built on digital assets may even be announced in October at the upcoming summit.
The highlight of last Summer’s BRICS Summit was the expansion of the bloc, with BRICS inviting multiple new nations to join its ranks. Now consisting of eight members, BRICS’ next step is to continue swaying other countries to ditch the US Dollar. The alliance aims to do this by uplifting local currencies for trade, as well as developing its new currency system that would rival the greenback.
Over the past year, the BRICS economic alliance has been committed to de-dollarization. On the heels of Russian sanctions, the alliance feared similar action, threatening its ability to compete economically. Although they firmly embraced local currency promotion, they took it a step further by promising a new BRICS currency that would take down the US Dollar from its long reign of dominance.
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Doubt in the US-based currency has increased over the past few years, especially recently. This is in part due to growing inflation hampering the dollar’s value, as well as multiple interest rate hikes. The greenback is still the global reserve, but a mounting US Debt has ensured that it this may change. Therefore, BRICS may seek to capitalize with a major announcement at the next summit in Russia of a new currency that will weaken the already battered dollar.
