Russia earlier denied talks of a unified currency within the BRICS bloc. New developments, however, reveal that the country is working with India to accelerate their vision of a “digital economy.” Is this a sign of the eventual creation of a BRICS digital currency, which could threaten the US dollar’s dominance in foreign exchanges?
Unified BRICS Currency Speculations
The BRICS has been very busy since it elected South African President Cyril Ramaphosa as its Chair last year. The assumption of its new head also came with a renewed focus on addressing the effects of climate change, advancing education and skills training, enhancing the African Continental Free Trade Area, strengthening the post-pandemic socio-economic recovery, and solidifying multilateralism among member countries.
Evidently absent in all its press releases was a direct reference to its speculated unified digital currency. With all the buzz circulating about the matter which worried Western countries, this was eventually addressed by Russian Foreign Minister Sergey Lavrov.
Fast-forward to this year, Sergey Cheremin, Minister of the Moscow City Government and Chairman of the Board of the Business Council for Cooperation with India, recently discussed his country’s developmental plans with India at the Smart Cities India Expo program. Along the way, he laid down the joint effort of the two nations in firming up their “information technology and the digital economy.”
Again, there was no confirmation or slight mention of a common currency for BRICS during the event. But, of course, most news outlets have been linking the latest affair as a road leading to it.
Well, it just makes sense since the primary goal of BRICS nations anyway is to get off their dependency on the US dollar for overseas trade and financial exchanges. Let’s not forget that the alliance has already forged BRICS Pay, too, which is a tailored digital payment solution for BRICS members and a direct challenge to the US-dominated SWIFT system.
The West Rattled by the Prospect of a BRICS Currency
Senator Marco Rubio just sounded the alarm in response to the current developments of the BRICS. The legislator from Florida pointed out that the rapid expansion of the group — now composed of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates — could threaten the reigns of the US and Europe in the global financial system.
The most pressing concern raised by Rubio, however, is how the new financial network paved by the BRICS could undermine the economic sanctions imposed by the US and its allies against hostile nations.
“If current trends continue, it will become harder and harder for the United States to prevent international violence and oppression through sanctions,” warned Rubio.
Among the BRICS member countries, the US has existing comprehensive sanctions against Russia and Iran.