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<ul>
 <li>National currencies of BRICS nations now surpass the US dollar in trade settlements, marking a significant move towards decoupling from the dollar.</li>
 <li>BRICS is actively developing its own payment platforms, including potential cryptocurrency integration, to facilitate cross-border transactions independently.</li>
</ul>
As an expert in blockchain and economic shifts in global trade, it is evident that the <a href="https://www.ethnews.com/global-shift-g20-and-brics-turn-to-cbdcs-for-international-trade/" rel="noopener noreferrer nofollow">BRICS</a> nations (Brazil, Russia, India, China, and South Africa) are intensifying their efforts to reduce their dependency on the US dollar. This strategic pivot is highlighted by the increased use of their national currencies in trade transactions, which now exceed those conducted in US dollars.
<h2 id="trade-dynamics-in-the-brics-bloc">Trade Dynamics in the BRICS Bloc</h2>
Samip Shastri, Vice President of the <a href="https://www.ethnews.com/could-the-brics-currency-really-topple-the-dollar/" rel="noopener noreferrer nofollow">BRICS</a> Chamber of Commerce and Industry, recently reported that the volume of trade conducted in the national currencies of member countries has overtaken that in US dollars. This shift not only reduces transaction costs associated with currency conversion but also sidesteps geopolitical risks linked to using the dollar amidst international sanctions and trade disputes.
This movement is not isolated to the <a href="https://www.ethnews.com/brics-and-sco-nations-advance-decoupling-from-the-dollar-in-trade-transactions/" rel="noopener noreferrer nofollow">BRICS</a> nations alone. The Shanghai Cooperation Organization (SCO), which includes major Eurasian countries such as China, Russia, and Iran, is also seeing a similar trend with 92% of its cross-border payments bypassing the US dollar.
At the heart of this transition is the development of innovative payment mechanisms tailored to the needs of these emerging economies. Shastri detailed these advancements at the <a href="https://www.ethnews.com/brics-alliance-forges-ahead-with-dollar-less-trade-plan-xrps-importance-examined/" rel="noopener noreferrer nofollow">BRICS</a> Urban Future Forum, emphasizing ongoing discussions around the integration of cryptocurrencies in their transactions. This move could significantly streamline cross-border payments by reducing reliance on conventional financial systems which are predominantly dollar-centric.
The Russian Deputy Minister for Economic Development highlighted recent progress in this area, indicating a robust commitment to ‘<a href="https://www.ethnews.com/brics-nations-drive-gold-price-to-new-highs-amid-de-dollarization-efforts/" rel="noopener noreferrer nofollow">de-dollarization</a>‘. The essence of these initiatives is to foster a more inclusive and resilient financial ecosystem that can withstand the volatility of relying on a single dominant currency.
In March 2023, the Chinese yuan surpassed the US dollar in frequency of use for the first time, underscoring a broader global realignment towards multipolarity in economic corridors. This trend was further confirmed by statements from Russian Foreign Minister Sergey Lavrov, who noted that an increasing number of countries are showing interest in the alternative payment platforms being developed by <a href="https://www.ethnews.com/turkey-aims-to-join-brics-impact-on-bitcoin-and-global-economy/" rel="noopener noreferrer nofollow">BRICS</a>.
<h2 id="technological-integration-and-future-prospects">Technological Integration and Future Prospects</h2>
BRICS is also setting the stage for the formal introduction of its payment systems, which could include the SPFS, a Russian messaging system, and the <a href="https://www.ethnews.com/brics-unveils-game-changer-ready-to-launch-brics-pay-and-challenge-dollar-dominance/" rel="noopener noreferrer nofollow">BRICS Pay</a> digital payment platform. Additionally, a stablecoin backed by gold, named the Common Unit of Account (Unit), is under consideration. These tools are expected to feature prominently at the upcoming annual BRICS summit, reflecting the bloc’s strategic vision of reducing global dependency on traditional financial systems dominated by the West.
As these nations continue to advance their financial and technological infrastructure, the international economic landscape is poised to evolve significantly. By developing and implementing their own systems, <a href="https://www.ethnews.com/bitcoin-ignites-frenzy-billion-dollar-companies-and-brics-nations-embrace-btc-fueling-speculation-of-usd-profitability/" rel="noopener noreferrer nofollow">BRICS</a> countries are not only challenging the current global financial paradigm but are also laying the groundwork for a more diversified and stable economic future.
The post <a href="https://www.ethnews.com/brics-nations-forge-ahead-with-decoupling-from-the-dollar-in-trade/" rel="noopener noreferrer nofollow">BRICS Nations Forge Ahead with Decoupling from the Dollar in Trade</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

BRICS Nations Forge Ahead with Decoupling from the Dollar in Trade

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