Brazil has abandoned the idea of a common BRICS currency, opting instead for trade in local currencies. This decision comes amid concerns over U.S. dollar dominance, with Brazilian President Lula da Silva emphasizing reduced dollar dependence. The BRICS bloc will now focus on reforms to ease payments in national currencies and explore blockchain technology.
Brazil has opted not to pursue a common currency for the BRICS nations during its presidency this year. Instead, the emphasis will shift towards enhancing trade using local currencies. This decision comes in the backdrop of warnings from U.S. President Donald Trump regarding the potential challenge to the U.S. dollar’s supremacy in global transactions.
The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, has been considering alternatives to the U.S. dollar. Brazilian President Lula da Silva has been a strong proponent of reducing dependence on the dollar. However, the aspiration for a shared BRICS currency has remained largely unfulfilled and mostly political in nature, failing to make significant progress.
Instead of a single currency, BRICS is refocusing efforts on reforms aimed at simplifying international payments among member countries using their respective national currencies. This strategy aims to lower the vulnerabilities linked to the dominance of the dollar in global trade. Additionally, the bloc is exploring the adoption of blockchain technology to connect payment systems, thereby reducing transaction costs and minimizing susceptibility to unilateral sanctions.
Brazil’s decision to forgo a common currency for BRICS nations focuses on enhancing local currency trade instead. This approach seeks to diminish reliance on the U.S. dollar while exploring modern payment technologies like blockchain. As BRICS members seek to navigate the challenges posed by dollar dominance, local currency reforms promise a strategic shift in international trade relations among the bloc.
Original Source: news.bitcoin.com
