• Brazil experts think leaders of the BRICS bloc will agree to launch a digital fiat at an upcoming summit.
• The coin could debut in 5-10 years if the BRICS bank were to issue and regulate it.
• Current economic climate favors the creation of a shared digital currency among BRICS countries.
Experts in Brazil believe that the nations which comprise the BRICS (Brazil, Russia, India, China, and South Africa) bloc will agree to launch a digital fiat currency at a summit next week. This coin could debut in five to ten years depending on how much progress is made by member nations during talks about creating such a currency.
Benefits of BRICS Digital Currency
The current global economic climate favors the creation of this digital currency as it would help replace United States dollar for intra-BRICS trade, per Brazilian President Luiz Inacio Lula da Silva. Furthermore, discussions about launching such a token have been taking place since 2019 between these nations and further progress can be expected from talks at this year’s summit in Johannesburg, South Africa from August 22nd to 24th.
Progress Made by Member Nations
Member nations such as China, Brazil, and Russia have already taken steps towards creating their own Central Bank Digital Currencies (CBDCs). These include the Digital Yuan (in China), DREX (in Brazil), and the Digital Ruble (in Russia). All three countries have also discussed cross-border trades with these CBDCs while Moscow allies like Belarus have also expressed interest in using them for international trades. Additionally, Iran has discussed collaborating with Russia on launching a gold-pegged stablecoin.
In conclusion, experts in Brazil are confident that leaders from all five members of the BRICS bloc will agree to launch a new digital fiat currency soon which could be regulated by its own bank within 5-10 years after its launch. Progress has already been made by member states including China, Brazil and Russia who have developed their own CBDCs while other countries like Belarus and Iran are interested in using them for cross-border trades too. The current global economic climate makes this an attractive prospect for all involved as it would provide an alternative to using US dollars for intra-BRICS trade thus providing more financial stability amongst members states.