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- The tendency for BRICS to embrace Ripple (XRP) as its currency is being nursed by supporters.
- The bloc has continued to expand with the addition of new members.
With the BRICS (Brazil, Russia, India, China, and South Africa) nations fighting the potential hegemony of the United States dollar, there have been several speculations about what alternative currency the bloc will adopt. Brazil’s President, Luiz Inacio Lula da Silva has reiterated that the reason behind the push for de-dollarization is to shield powerful nations from the ebbs and flows of the dollar exchange rate.
Some netizens suspect that the leading cryptocurrency Bitcoin (BTC) may be the currency of choice owing to its decentralization. Because of this, BTC enthusiasts have been following the call for de-dollarization amongst the BRICS member countries with much enthusiasm.
Ripple’s XRP has also been considered especially because of its functionality of facilitating cross-border payments. It is globally recognized that Ripple offers cutting-edge technology with XRP and it is believed that its utilization will drive mainstream adoption and possibly drive the price of other cryptocurrencies to new All-Time Highs (ATH) in the long run.
Noteworthy, the capacity of the BRICS Group is expanding gradually with many nations indicating interest to be part of the bloc. Some of these nations are Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, and Indonesia.
At the recent 2023 BRICS Summit which was held in Johannesburg, South Africa, the bloc announced an historic expansion that will see the admission of some of the countries that have indicated interest. So far, official invitations have been sent to six nations including Saudi Arabia, the UAE, Iran, Egypt, Argentina, Ethiopia, and Egypt and they would likely be joining the bloc in the coming year.
BRICS Gains 30% of Global Economy
With some top economies as members of the bloc, BRICS is set to control approximately 30% of the world’s economy. Once countries like Saudi Arabia and the UAE join, there are bound to be more shifts of global power, giving the bloc increased authority.
Saudi Arabia on its own, controls a GDP of $1.06 trillion while Argentina and the UAE follow with $641 billion and $499 billion respectively. On the other hand, Egypt and Iran boast GDPs above $360 billion, with Ethiopia reaching $156 billion. Their collaboration will have geopolitical implications for the world. It is worth noting that Saudi Arabia can have a massive influence on the de-dollarization narrative being pushed by the BRICS Group.
The West Asian country has the capacity to drag in lots of oil sales which will be settled in a currency other than the U.S. dollar. The completion of such transactions will be a dream come true for BRICS. South Africa has started utilizing its local currency for international trade as part of the BRICS’ strategy to prioritize their local currencies in the global financial system.
China also bought 102 tonnes of gold in 2023, Russia acquired 31.1 tonnes, and India added 2.8 tonnes to its gold reserves in a bid to pivot power across the board.
