The concept of a BRICS currency has gained attention as Brazil, Russia, India, China, and South Africa (BRICS) explore alternatives to the US dollar for international trade and financial transactions. Here is an overview of the initiative:
What is the BRICS Currency?
The BRICS nations aim to create a common reserve currency, potentially called the "Unit," backed by a basket of currencies from member countries and possibly gold. This initiative seeks to reduce reliance on the US dollar and mitigate risks associated with dollar-dominated global systems.
A blockchain-based payment system, known as the BRICS Bridge, is also under development to facilitate cross-border transactions using central bank digital currencies (CBDCs). The BRICS Bridge challenges traditional cross-border payment (CBP) systems, which often involve high fees and currency conversion through the US dollar.
Motivations Behind the Initiative
Economic Independence: The BRICS countries aim to assert greater control over their …