According to a Trace Finance analyst, the BRICS countries may introduce a single digital currency that would be managed and issued by the New Development Bank, also known as the BRICS Bank. He emphasized that the current crisis facing the US is the greatest in history. At the summit of the economic bloc next week, many anticipate that a shared BRICS currency that would compete with the dominance of the U.S. dollar will be considered.

Analyst Discusses BRICS Digital Currency

In an interview with CNN Brazil that was broadcast on Friday, Evandro Caciano, the head of FX at Trace Finance, talked about the potential introduction of a digital currency by the BRICS countries. Brazil, Russia, India, China, and South Africa make up the economic bloc. He warned that the U.S. dollar is no longer as secure as it once was. (Google translation)

The current American crisis is the greatest in history. It is a fundamental crisis, and the dollar is under control as a result of credit rating downgrades.

Many anticipate that the issue of a single BRICS currency will be raised at the forthcoming summit of the economic community, which will be held in Johannesburg from August 22–24. The idea of a single currency, according to the South African diplomat in charge of BRICS relations, is not on the summit’s agenda.

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A digital currency that is akin to a central bank digital currency (CBDC) has been proposed as one of the approaches to making a shared BRICS currency practicable. As Caciano stated:

A single digital currency for the group might be created and governed by the BRICS Bank.

Caciano, however, thinks that developing and implementing this currency would take years and could take place in stages. “The adoption of a digital currency throughout the BRICS is a project of at least five to 10 years,” he said.

A similar statement was made recently by Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, often known as the BRICS Bank, who described the creation of any currency other than the U.S. dollar as a “medium- to long-term ambition.”

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