BRICS nations are actively discussing the creation of a common digital currency to strengthen economic ties and reduce dependence on the US dollar. Indian Foreign Secretary Vikram Misri confirmed that talks have been intense, with research commissioned to explore this initiative further.
During a recent briefing, Misri emphasized the importance of using national currencies for trade, stating that BRICS countries want to facilitate local currency settlements. He noted that establishing a correspondent banking network among member nations is a vital first step toward achieving this goal.
Shri Vikram Misri, Foreign Secretary, said, “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.”
Experts believe that a unified digital currency could improve economic cooperation within BRICS and enhance resilience against financial crises. Gao Jian from the Shanghai Institute of Foreign Languages highlighted that creating an independent payment mechanism is essential for BRICS to withstand economic pressures.
Russian President Vladimir Putin has proposed using digital currencies as a key investment tool for BRICS members. He stated that this initiative aims to support developing nations and minimize inflationary risks.
Putin envisions the digital currency framework extending beyond BRICS to benefit other emerging economies as well. As BRICS explores this digital currency option, the move could signal a significant shift in global finance, providing an alternative to the dollar-dominated system.
This development may pave the way for a new economic landscape, where cryptocurrencies take a backseat to centralized digital currencies in international trade.
Also Read: BRICS to explore Digital Currencies for Investments says Putin
