According to a Russian IMF representative BRICS is ready to offer an alternative to the US dollar amid the currency's collapse, and the bloc should prepare for such an eventuality. The alliance, consisting of Russia; India, China; Brazil; South Africa; and supporting countries, has been working to abandon the US dollar for some time.
The BRICS bloc is working to develop a new BRICS currency to replace the US dollar, in addition to local currencies between countries. In an interview with RIA Novosti published on Friday, Russian IMF representative Alexey Mozhin noted that the shortcomings of the current financial system are becoming increasingly apparent. Moreover, he points out that many publications are starting to mention BRICS as a group that will provide a successful alternative to the 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 convert the said BRICS accounting unit into a real currency, backed by barter goods.”
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BRICS currency should serve as a replacement if the US dollar collapses
According to reports, the BRICS bloc has turned to blockchain technology for its brand new payment system. Indeed, efforts are aimed at building a competitive currency based on digital assets. The US dollar is still a long way from a total crash, but the stage is there for the BRICS to do damage.
The dollar is still the global reserve, but rising US debt has ensured that this will not remain the case forever. Furthermore, support around the BRICS bloc has grown in recent years, with more countries likely to receive invitations to join in 2024. With more support in numbers and finances, BRICS could develop a strong competitive currency to combat the US dollar. While it may not win immediately, the uncertainty of the US currency could play a role in its demise in the long run.