Five Nation Group Mulling over Cryptocurrency Plans to Tackle USD Dominance

Brazil, Russia, India, China, and South Africa or popularly known as BRICS, are backing the idea of a common payment system. The 11th BRICS summit is currently underway in Brazil.

The set up would enable seamless trade between the countries and also tackle the dominance of the US dollar in the international markets.

Reportedly, the idea of a common cryptocurrency for the five nations has been discussed as well. However, the head of the Russian Financial Watchdog was more inclined towards increasing the viability of national currencies.

Kirill Dmitriev, the head of the Russian Direct Investment Fund (RDIF) told the reporters,

“An efficient BRICS payment system can encourage payments in national currencies and ensure sustainable payments and investments among our countries, which make up over 20% of the global inflow of foreign direct investment,”

In the future, an integrated payment system is highly probable between the emerging economies. Whether or not any cryptocurrency will be used or created for the purpose is not confirmed.

Nevertheless, crypto space surely seems to add a lot of value in international trade. It has taken an ugly turn with national currencies competing for their dominance.

China Moves Another Step for the Launch of Digital Currency

Moreover, with China aggressively moving towards capital control with its Digital Renminbi. Being a part of BRICS, China will look to compete with the US dollar with its digital currency.

PBOC (People’s Bank of China) announced that it will pilot a regulation on large-amount cash deposit/withdrawal restrictions in the three provinces of Hebei, Zhejiang, and Shenzhen. It will require registration of large cash deposits within the country.

Dovey Wan, prominent crypto-analyst with sources in the country noted along with capital control,

All the dots are now connected for upcoming Digital RMB too

How do you think that a common cryptocurrency between trade organizations will affect international trade? Please share your views with us.

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