The annual BRICS summit will take place in Kazan next week, and it is attracting a lot of attention within the crypto community. Speculation is rife that the BRICS countries may announce a new digital currency. These countries have long been striving to become less dependent on the US dollar, and their own digital currency could play an important role in this.
In the run-up to the summit, the Russian Ministry of Finance, the Russian Central Bank and the consultancy company Yakov and Partners published a report. This document provides more insight into a possible new payment system for the BRICS countries.
Wat is BRICS?
BRICS is a partnership of five major emerging economies: Brazil, Russia, India, China and South Africa. These countries cooperate in areas such as trade, finance and politics. They aim to make their international payments and monetary policies more independent of the US dollar, in order to have more control over their economic decisions.
New proposals for the BRICS payment system
The recently published report proposes four possible models for a BRICS payment system. Preference is given to a system based on Central Bank Digital Currencies (CBDCs) and Distributed Ledger Technology (DLT). This could improve the speed of payments and reduce costs by cutting out middlemen.
Other proposals include a network of commercial banks for payments in local currencies, a direct link between the central banks of the BRICS countries, or the use of commodities such as gold, oil and gas for trade between the countries.
Speculations surrounding XRP ecosystem
A notable point in the report is the emphasis on Distributed Ledger Technology (DLT), which is also used by the XRP ecosystem. DLT enables fast and cheap transactions, which has fueled speculation that the BRICS countries could potentially develop their own CBDCs in partnership with Ripple. This could mean a potential boost for the XRP ecosystem and the coin’s price.
Source: https://newsbit.nl/brics-top-in-kazan-aankondiging-van-nieuwe-digitale-munt-op-komst/
