BRICS: Three Nations to Introduce CBDC, Reducing Dependence on US Dollar
Brazil and two other countries within the BRICS alliance have taken significant steps in cross-border payments by advancing Central Bank Digital Currency (CBDC) initiatives. The Central Banks of these nations have officially partnered to create a digital currency specifically for trade between them, establishing a financial infrastructure that bypasses the U.S. dollar for international transactions.
This development highlights the potential impact on various U.S. sectors if BRICS nations continue to move away from the dollar in trade. Alongside promoting the use of local currencies for global transactions, BRICS is pursuing CBDC creation as part of a broader de-dollarization strategy. This shift could present challenges for the U.S. dollar over the next decade as de-dollarization gains momentum globally.
**BRICS Forms CBDC Alliance Targeting U.S. Dollar**
In line with the de-dollarization agenda, the Hong Kong Monetary Authority (HKMA) announced a CBDC partnership with the Bank of Thailand (BOT) and Brazil’s Banco Central do Brazil (BCB) to facilitate cross-border tokenized payments. This alliance aims to advance tokenization across financial sectors, factoring in the unique technical, business, and regulatory needs of each nation, as noted by BOT executive Alisara Mahasandana.
Additionally, Russia, another BRICS member, is developing a CBDC for trade settlements, with BRICS potentially moving toward tokenized digital currencies in trade, diminishing reliance on the U.S. dollar. The greenback’s future could face challenges unless the U.S. takes substantial action.
This development highlights the potential impact on various U.S. sectors if BRICS nations continue to move away from the dollar in trade. Alongside promoting the use of local currencies for global transactions, BRICS is pursuing CBDC creation as part of a broader de-dollarization strategy. This shift could present challenges for the U.S. dollar over the next decade as de-dollarization gains momentum globally.
**BRICS Forms CBDC Alliance Targeting U.S. Dollar**
In line with the de-dollarization agenda, the Hong Kong Monetary Authority (HKMA) announced a CBDC partnership with the Bank of Thailand (BOT) and Brazil’s Banco Central do Brazil (BCB) to facilitate cross-border tokenized payments. This alliance aims to advance tokenization across financial sectors, factoring in the unique technical, business, and regulatory needs of each nation, as noted by BOT executive Alisara Mahasandana.
Additionally, Russia, another BRICS member, is developing a CBDC for trade settlements, with BRICS potentially moving toward tokenized digital currencies in trade, diminishing reliance on the U.S. dollar. The greenback’s future could face challenges unless the U.S. takes substantial action.