Just In: BRICS Countries Mulls Stablecoin For Trade Settlement

In a bid to create an alternative to the use of the United States dollar for cross-border remittances and trade, member countries of the BRICS consortium are considering implementing a stablecoin.

BRICS To De-Dollarize Trade With Stablecoin

During a recently conducted interview, Russian Deputy Foreign Minister Sergei Ryabkov disclosed the plan for the bloc to consider stablecoins for international settlements. This is in addition to developing “BRICS Bridge,” a platform that supports interoperability of Central Bank Digital Currency (CBDC) payments. 

Furthermore, he talked about the roles that the fiat currency-backed cryptocurrency will play for the group including fostering financial cooperation among BRICS member countries. This looks like an indirect approach for the BRICS countries to finally have their native currency. It remains uncertain how far the bloc has gone with its research and the plans for the proposed stablecoin. 

For quite some time, the BRICS Group, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, has been discussing the usage of other alternatives to pursue de-dollarization. The de-dollarization effort has gained significant traction in the last few months due to the recent inflation and economic slowdown. 

Last month, the bloc announced the creation of an independent payment system that is based on digital currencies and blockchain. The focus of the alternative payment method is to ensure that it is “convenient for governments, common people and businesses, as well as cost-effective and free of politics,” Russia’s Kremlin aide Yury Ushakov said. 

Stablecoin Market Seeing Immense Adoption Growth

Noteworthy, this move from the BRICS Group comes amidst a heightened use of stablecoins in the digital asset ecosystem. The stablecoin market recently skyrocketed beyond the $160 million mark, hinting at a significant feat that was last seen in 2022. 

A week ago, Triple-A, a Singapore-based payments firm, made a strategic move by announcing its decision to integrate PayPal’s stablecoin into its array of payment options tailored for merchants.

Top blockchain payments firm Ripple also revealed its plan to launch its stablecoin, underscoring investors’ growing interest in the special asset class. With a burgeoning alliance like BRICS now considering the implementation of stablecoins, the ecosystem is bound to see an upsurge in adoption over time.