There have been talks of a new world currency coming our way.
Benzinga reports the BRICS alliance is exploring the idea of an innovative currency and plans to share proposals at the upcoming summit in South Africa. BRICS is an acronym standing for five leading emerging economies—Brazil, Russia, India, China, and South Africa. Deputy Chairman of Russia’s parliament, Alexander Babakov, claims the plan will initially transition from using domestic currencies in transactions to introducing and circulating a digital or “alternative form of a groundbreaking currency in the near future.”
He’s hoping the summit, scheduled for August this year, will show how ready BRICS is to implement this initiative. During the St. Petersburg International Economic Forum event in New Delhi, India, Babakov stressed the importance of both nations working toward a new form of payment, saying that digital payments could be the most promising and viable. According to Cointelegraph, he feels the currency could benefit China and other BRICS members.
“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”
While it’s tentatively set to be announced this year, this plan has been in motion for quite a while. Back in 2019, members of the bloc were discussing the creation of a new digital currency for a unified payments system. China is already ahead of the game with its central bank digital currency project, and Brazil is right behind them with crypto adoption and legalizing it as a payment method.
Meanwhile, the United States continues its war on cryptocurrency, with finance regulators closing in on the embryonic industry.
BRICS will likely become stronger as other nations, such as Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt, intend to become part of this economic bloc.
The project for the new currency will be presented at the BRICS leaders’ summit in August, as Babakov said Thursday on the sidelines of the India-Russia Business Forum in New Delhi.
This forum marked the commencement of international events at the St. Petersburg International Economic Forum 2023.
The top Russian official was quoted as saying, “I think that at the BRICS [leaders’ summit], the readiness to realise this project will be announced, such works are underway.”
Several other countries have expressed interest in joining the BRICS economic bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt. South Africa will host the next BRICS summit in August.
Bitcoin.com also said Babakov left open the possibility of a unified currency arising within BRICS, potentially backed by gold as well as other commodities, such as rare-earth elements or land.
At the India-Russia Business Forum on Thursday, Babakov emphasised that India and Russia “should institute a new economic association with a new, shared currency.”
He was quoted by India TV as saying, “New Delhi, Beijing, and Moscow are the nations that now institute a multipolar world that is endorsed by the majority of governments.
“Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S. dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”