• BRICS nations are working on a common currency for trade settlements and reduce the dependence on USD.
• The member nations are relying on gold, however, have divergent views on Bitcoin. Details awaited at BRICS Summit 2023 this month.

Top global economies across the world have been discussing reducing their dependence on the U.S. Dollar for trade and the BRICS nations are leading this development. During the upcoming summit in August, the BRICS alliance, which consists of five nations, will talk about using their own currencies for cross-border transactions.

They want to find ways to boost their local economies by using their native currencies. The goal is to reduce the dependence on the U.S. dollar for global trade and instead use their own currencies for importing and exporting goods.

In an exclusive conversation with Watcher Guru, the South African BRICS Ambassador Anil Sooklal confirmed that the alliance will focus on discussions about their own currencies. This shows that BRICS is committed to reducing the significance of the U.S. dollar and aims to prioritize their local currencies in the global financial system. “Discussion focuses on deepening use of local currencies,” confirmed Sooklal.

As a result, the five BRICS nations have decided to use their own local currencies to settle up trade among themselves. Listen to what Brazil President Luiz Inácio Lula da Silva has to say about ending the dominance od the US Dollar in international trade.

BRICS will jointly determine the sectors in which they will use their local currencies for international transactions. This decision aims to bolster local economies and give their native currencies a boost in foreign exchange markets.

By conducting trade within the bloc without relying on the U.S. dollar, businesses in BRICS countries will thrive. Using their local currencies for transactions within BRICS will be faster, smoother, and more cost-effective compared to using the U.S. dollar.

BRICS Relies on Gold, Will Bitcoin Have A Place?

The BRICS nations have been relying on Gold in order to launch a common currency among themselves for trade purposes. Last month, this cohort nations announced the launch of Gold-backed currency.

The BRICS bloc is rapidly acquiring gold with the aim of challenging the dominance of the U.S. dollar. According to a report by the World Gold Council, China bought 102 tonnes of gold in 2023, Russia acquired 31.1 tonnes, and India added 2.8 tonnes to its gold reserves. Although these figures might seem small on a global scale, they could have a significant impact on the status of the U.S. dollar.

According to Robert Kiyosaki, the author of the popular personal finance book ‘Rich Dad Poor Dad,’ BRICS could use gold as a weapon to weaken the U.S. dollar. He believes that BRICS will start their de-dollarization process by focusing on gold rather than introducing a new currency.

Things shall get more clear at the upcoming BRICS Summit 2023 ahead this month. The goal of the BRICS nations is to provide a financial cushion to developing nations and help them lift their economies in the coming years. However, the question is whether Bitcoin aka Digital Gold finds its place among BRICS adoption.

Among all the member states of BRICS, the attitude towards Bitcoin varies. Russia has shown openness by considering cryptocurrencies for international trade. In contrast, China and India have taken critical stances, with China banning cryptocurrency trade, while South Africa and Brazil have adopted a neutral approach.

The divergent approaches of member states make it challenging to predict Bitcoin’s potential adoption. However, all countries recognize the benefits of Bitcoin and its technology, which may pave the way for its official adoption as a currency in the future.