The BRICS nations are planning to launch a digital currency that will be used to settle cross border payments between each other. Kirill Dmitriev, CEO, the Russian Direct Investment Fund (RDIF) revealed this proposal made by Brazil, Russia, India, China and South Africa (BRICS). The RDIF is a 10 billion dollar sovereign wealth fund created by the government of Russia.
Over the past few months, the word cryptocurrency has become a regular headline-maker in the financial and technological news space. We have seen a social media giant announced the launch of its own digital currency Libra. Considering the future prospects, several countries across the globe have initiated the process of developing their own national digital currency. With so much happening in the crypto-zone, the news of BRICS’ interest in their very own crypto, seems like a gradual flow of progression.
The single cryptocurrency yet to be launched is meant for payment settlements within the BRICS nations. This development comes, post their decision to reduce the share of settlements in dollars. As per statistics placed by Dmitriev, the dollar has fallen from 92 percent to 50 percent in the last 5 years in foreign trade.
Nikita Kulikov, a member of State Duma’s expert council said,
“The development process of the cryptocurrency is easier compared to the implementation and use between the nations.”
The other developments, involve BRICS’ Russia, India and China’s plan to look for an alternative for the SWIFT payment system which is heavily dominated by the US. They believe that, an alternative will hopefully smoothen trade between countries.
The talks of Russia’s SPFS which is a financial messaging system is linked with China’s cross border inter-bank payment system (CIPS), and India’s plans to link the Central Bank of Russia with another service are a couple of things that the rumor mills have been churning for some time now.
However, the real implementation of such rumored plans is yet to be seen.Overall, with so many countries giving a serious thought on the development of digital currencies, it is sure to bring some positive advancements in the crypto space.