According to the latest reports, it seems that BRICS could start using stablecoins in settlements. This is what a Russian official reportedly said.
BRICS could start using stablecoins in settlements
BRICS nations have created a special communication channel between their central banks.
This channel can be used for international settlements and there is a possibility that stablecoins might become a tool for this purpose.
In an interview with TV BRICS, Ryabkov revealed that BRICS countries are exploring the option of using stablecoins for international settlements.
Ryabkov, a Russian deputy foreign minister, mentioned discussions about creating a “BRICS Bridge” platform.
The platform aims to interlink central bank digital currencies (CBDCs) and promote financial cooperation among BRICS member countries. However, no specific details were provided regarding the use of existing products.
It is currently uncertain whether the members of the BRICS alliance have reached a consensus regarding the timeline of their discussions.
Russia has been working on reducing US-dollar dependence
However, Russia has been actively working on reducing their dependence on the U.S. dollar within BRICS by using blockchain technology.
In an interview with TASS, a state-owned Russian news agency, Kremlin aide Yury Ushakov revealed that they are developing a blockchain-based system for BRICS, but did not provide a timetable for the initiative.
Moscow has been pushing for the use of blockchain technology for cross-border settlements within BRICS countries, especially with the increase of Western sanctions.
In September 2023, Russian Prime Minister Mikhail Mishustin stressed the importance of utilizing digital assets and blockchain technology to attract foreign investments. He believes that such initiatives would provide “more opportunities” for attracting foreign investments.
What are CBDCs?
Central bank digital currencies (CBDCs) are digital counterparts of traditional fiat currencies overseen by central banks. Unlike volatile cryptocurrencies, CBDCs have a stable value, mirroring their nation’s currency, backed by monetary policies and regulations.