BRICS countries are actively discussing the possibility of establishing a shared digital currency aimed at strengthening economic cooperation and reducing reliance on the US dollar. Indian Foreign Secretary Vikram Misri confirmed that the discussions have been intense, with dedicated research underway to explore the initiative’s feasibility and potential impact.
During a recent briefing, Misri emphasized the significance of settling trade in local currencies and noted that BRICS is exploring ways to facilitate these transactions. He highlighted the establishment of a correspondent banking network among member states as a crucial step toward achieving this goal. “So, insofar as the local currency settlement of trade-related issues is concerned, yes, that is something that is being discussed and encouraged within BRICS. But beyond that, I think we still have some work to do,” Misri explained.
The idea of a unified digital currency for the BRICS bloc aims to improve economic collaboration and enhance resilience against global financial uncertainties. Gao Jian, a financial expert from the Shanghai Institute of Foreign Languages, emphasized that creating an independent payment system would be essential for BRICS countries to withstand external economic pressures and promote financial stability.
Russian President Vladimir Putin has been a strong proponent of using digital currencies as investment tools within the BRICS framework. He proposed that the digital currency initiative would support developing countries and help mitigate inflation risks. Putin also envisions the framework extending its benefits beyond BRICS, potentially aiding other emerging economies as well.
If realized, a BRICS digital currency could represent a major shift in global finance, challenging the dollar-centric system that has dominated international trade for decades. This development may pave the way for a new economic landscape, where centralized digital currencies take precedence over cryptocurrencies in facilitating cross-border transactions.
The move aligns with broader efforts within BRICS to pursue de-dollarization strategies, thereby enhancing the bloc’s economic sovereignty. By reducing the dependence on Western financial institutions and creating an alternative settlement mechanism, BRICS could significantly alter the global economic order.
As talks continue, the success of this initiative will likely depend on the willingness of member countries to harmonize their economic policies and establish robust regulatory frameworks. However, the momentum toward a BRICS digital currency marks an important step in the bloc’s aspirations for a more balanced and multipolar global financial system.
