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- XRP might play a role in dethroning the US Dollar as the world’s reserve currency.
- Beyond BRICS, other bodies like the CIS want to reduce dependence on the US Dollar.
The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has agreed to reduce its reliance on the US dollar. This decision has heightened discussions on the future of global finance, with experts suggesting crypto as an alternative currency.
Some experts now focus on the implications of the BRICS transition to XRP, the digital asset associated with Ripple Labs Inc. Note that the BRICS expanded this year to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.
XRP As an Alternative Asset to the US Dollar
Crypto expert Amelie on X says XRP would be the leading candidate should the BRICS decide to implement a digital currency as their payment system. Amelie shared a video with statements from US Representative Marjorie Taylor Greene, who expressed concern about the BRICS’ capacity to challenge the dollar’s global supremacy.
WOW! 💥
„The BRICS nations have an agreement, they‘re going to stop trading in the Dollar!
Wait until all of these countries stop trading in the Dollar – Inflation will be out of control!“#XRP would be in the top contenders’ list if BRICS countries choose a digital currency… pic.twitter.com/0VcckpLoWa
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) October 13, 2024
The US House Representative warned that the BRICS transition could lead to uncontrolled inflation in the US and a plummeting dollar. While Greene focused on the economic threats to the US, Amelie emphasized XRP’s potential in the global financial system. Amelie’s suggestion that XRP could become the BRICS official currency stems from its established infrastructure and ability to facilitate swift and secure transactions.
XRP is often hailed as a fast solution with low-cost international payments, addressing inefficiencies in the current financial system. Additionally, Ripple has partnered with global financial institutions to promote XRP as a bridge currency for cross-border transactions.
XRP also enhances its ledger’s high scalability and efficiency. The XRP Ledger (XRPL) rivals other established traditional payment systems with its high speed. XRPL can settle transactions in seconds at a low cost. These characteristics appeal to financial institutions and businesses that frequently send money across borders.
If the BRICS eventually explore alternatives to the US dollar, XRP’s potential as a bridge asset can help streamline transactions between member countries’ diverse currencies. Many community members are optimistic that BRICS will adopt XRP. A prominent crypto CEO recently predicted that this would happen by 2025.
In the meantime, 80% of Japanese banks are working with Ripple to enhance international payments, as reported by CNF. Russia’s President Vladimir Putin has also announced a blockchain-based payment system for BRICS, aiming to bypass Western financial institutions.
Global Efforts to Reduce Dependency on the US Dollar
It is worth noting that the BRICS alliance is not the only international organization fighting for freedom from the US dollar.
As CNF previously discussed, the Commonwealth of Independent States (CIS), consisting of 12 countries, now performs most of its trades with local fiat currencies. This year, CIS settled 85% of cross-border transactions in national currencies, adding pressure to the US dollar.
Meanwhile, BRICS is reportedly considering using the Chinese yuan for oil payments to reduce reliance on the US dollar. This move is anticipated to be discussed at the upcoming BRICS conference in Kazan, Russia.
