The United States closely follows developments within the BRICS group around a possible joint crypto currency. According to an Indian expert in international relations, Washington is aware of Brics’ efforts to reduce dependence on the US dollar. For the time being, however, there seems to be no active countermeasures from the US.
BRICS, consisting of large emerging economies such as China, Russia and India, is taking more and more steps towards financial autonomy and a reduced role in the dollar in international trade.
Brics and the search for financial autonomy
The conversations within Brics about a joint currency or the more frequent use of national currencies are inspired by geopolitical tensions and sanction policy. Russia and China in particular have been arguing for a long time for an alternative financial system that is less dependent on the US dollar.
India takes a more reserved position in this. Foreign Minister Subrahmanyam Jaishankar previously emphasized that “India has never been a supporter of full dedollarization.”
Former American President Donald Trump has also spoken out against the plans. He recently suggested that the US would impose a 100% trading rates on Brics countries if they introduce their own currency or completely abandon the dollar.
Despite this division, Brics countries are already taking steps to pay mutual trade in local currencies. This should not only reduce the transaction costs, but also offer protection against the volatility of the dollar.
Response from the United States
According to Subhashish Banerjee, an Indian expert in the field of international relations, the US is closely monitoring developments within Brics. In an interview with the Russian news agency Tass, he indicated that the discussion about a joint Brics-Munt may be somewhat exaggerated, but that the movement towards less dependence on the dollar is a serious message.
Sergey Ryabkov, the Russian BRICS-HERPA, stated that the goal of BRICS is not to completely replace the dollar, but to be less dependent on the American financial system. Various bilateral similarities between BRICS countries underline these intentions.
Brics expands and increases influence
The BRICS group has recently expanded itself with new members, including Egypt, Iran, De Vae, Ethiopia and Indonesia. In addition, the block is increasingly working with other emerging economies.
This expansion reinforces the influence of Brics on the world stage and seems to worry Washington. The ambition to create an alternative financial system that is less dependent on the dollar can shift power relationships in the global economy in the long term. Nevertheless, the chance of a joint BRICS currency remains uncertain for the time being.
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Source: https://newsbit.nl/verenigde-staten-houdt-gesprekken-over-brics-cryptomunt-nauwlettend-in-de-gaten/
