Throughout the last year, the BRICS economic alliance has sought to challenge Western hegemony on a global scale. It has continually embraced local currency promotion, seeking ways to lessen international reliance on the US dollar. Now, following the BRICS Summit 2024, Central Bank Digital Currencies (CBDC) could be the bloc’s next de-dollarization attempt.
The bloc has consistently shown an interest in blockchain payment methods to curtail the use of the greenback. That could be set to take a massive step forward in the upcoming year. Although the implementation of CBDCs is no easy feat, it could have massive and global implications.
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BRICS to Use CBDCs to Continue Challenging Wester Dominance?
Since 2022, the BRICS group has emerged as a key challenger to the global status quo. Specifically, it has invested heavily in finding new ways to evade sanctions and embrace native currencies in the global south. Although it was expected to take a massive step forward this year, the bloc’s policies have underwhelmed.
That could be set to change, however, with a potential new focus for the group. Indeed, the BRICS bloc could eye CBDCs as its next de-dollarization attempt. The collective has long discussed joining central banks. That could be a clear-cut way to establish a network of digital assets for which they can trade.
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Although the geopolitical world expected big things from the bloc’s most recent summit, they failed to deliver. A blockchain-based payment system was rejected by Russian President Vladimir Putin. He assured visitors that the bloc would not create any new infrastructure for trade transactions.
Moreover, that lessens the potential of a unified BRICS currency. At the summit, Putin was seen with a mock-up bill of that very currency. But that process doesn’t look likely. Still, the bloc did debut a BRICS Pay system earlier this year. It could be bound to integrate digital currencies shortly.