The BRICS bloc will meet in October for its annual summit in Russia. There the topic of a new BRICS currency will be up for discussion. Amid the alliance's de-dollarization efforts, the group is reportedly turning to blockchain technology for its brand new payment system. The competitive currency built on digital assets could even be announced at the upcoming summit in October.
The highlight of last summer's BRICS summit was the expansion of the bloc, with the BRICS inviting several new countries to join its ranks. The BRICS now consists of eight members and the next step is to continue convincing other countries to ditch the US dollar. The alliance aims to do this by elevating local currencies for trade, and developing a new currency system that could rival the dollar.
Over the past year, the BRICS economic alliance has been pushing for de-dollarization. Following Russian sanctions, the alliance feared similar actions would jeopardize its ability to compete economically. While they firmly embraced the promotion of the local currency, they went a step further by promising a new BRICS currency that would lift the US dollar from its long dominant reign.
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Doubts about the US currency have increased in recent years, especially lately. This is partly due to rising inflation hampering the value of the dollar, as well as multiple interest rate hikes. The dollar is still the global reserve, but rising US debt has meant this could change. Therefore, the BRICS could try to capitalize with a major announcement at the next summit in Russia of a new currency that will weaken the already battered dollar.