A Russian IMF representative claims that in the event that the US dollar collapses, BRICS is prepared to provide an alternative and that the bloc needs to be ready for this kind of situation. The alliance has been attempting to wean itself off of the US dollar for some time now, with members including Brazil, South Africa, India, China, Russia, and supporting nations.
In addition to national currencies, the BRICS bloc is developing a new BRICS currency to displace the US dollar. Russian IMF representative Alexey Mozhin stated that the flaws in the current financial system are becoming increasingly obvious in an interview with RIA Novosti that was published on Friday. He also notes that BRICS is being mentioned in a lot of publications as a group that will successfully replace the US dollar.
Such a proposal is being discussed,” the director told RIA Novosti. “In the event of the collapse of the dollar and the international monetary system, it will be necessary to turn the said BRICS accounting unit into a real currency, backed by exchange goods.”
According to reports, the BRICS organisation has adopted blockchain technology for their new payment system. In fact, its initiatives have aimed to create a rival currency based on digital assets. The US dollar has a ways to go before collapsing completely, but BRICS have a chance to cause harm.
Although the US dollar continues to be the world’s reserve currency, this won’t last forever due to the country’s growing debt. In addition, there has been an increase in support for the BRICS grouping in recent years, and more nations are probably going to be invited to join in 2024. If BRICS were to receive greater financial and numerical backing, they might be able to create a formidable rival currency to the US dollar. Even while it would not succeed immediately, the US currency’s volatility could ultimately contribute to its demise.