By Mohammed Bello Doka
In a recent interview with RIA Novosti, a Russian IMF representative disclosed BRICS' readiness to offer an alternative to the US Dollar in the face of its potential collapse. The alliance, comprising Russia, India, China, Brazil, South Africa, and supporting nations, has long been contemplating a shift away from the greenback.
The bloc is actively working on developing a new BRICS currency, alongside exploring the use of local currencies in intra-bloc transactions. According to Alexey Mozhin, the shortcomings of the current financial system are becoming increasingly evident, prompting discussions within the alliance about offering a viable alternative to the dollar.
Mozhin emphasized the necessity of turning the proposed BRICS accounting unit into a tangible currency backed by exchange goods in the event of a dollar collapse. Moreover, the bloc has been exploring blockchain technology for its new payment system, indicating a strategic move towards digital assets.
Although the US Dollar still maintains its status as the global reserve currency, mounting US debt raises concerns about its long-term stability. With growing support around the BRICS bloc and potential invitations for new member countries, there is a prospect for the development of a robust alternative currency. While the US Dollar's dominance may not wane immediately, the uncertainty surrounding its future could pave the way for BRICS to establish itself as a significant contender in the global financial landscape.
Additionally, the article highlights that BRICS' efforts have led to the development of a competing currency built on digital assets. While the US Dollar's collapse may not be imminent, the groundwork laid by BRICS positions it to potentially challenge the dominance of the greenback in the long term.
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