The BRICS New Development Bank continues its de-dollarization efforts, with President Diane Rousseff announcing plans to increase the use of local currencies.
BRICS Bank's De-dollarization Plan
The BRICS nations are actively working towards reducing their dependence on the US Dollar. As part of this initiative, the bank is implementing measures to increase lending in the currencies of the member states. This aims to keep local currencies in circulation for trade among BRICS countries.
Statement from BRICS Bank President
BRICS New Development Bank President Diane Rousseff emphasized the bank’s commitment to reducing reliance on the US Dollar and promoting alternative currencies within the alliance. Speaking at the ninth annual meeting of the bank, she stated: > "One of the main focuses of the New Development Bank is to increase the use of local currencies. We have decided that up to 30% of the bank’s total funding will take place in local currencies." Rousseff also noted that debt in developing nations has become a major issue, and the bank’s new approach could help address the challenge. "Our bank can play a significant role in addressing these challenges," she added.
BRICS Gold-backed Stablecoin
BRICS is also working on a gold-backed stablecoin. Apart from the founding members, other newly joined nations are supporting the project. Tech entrepreneur Kim Dotcom stated that this stablecoin could negatively impact the US Dollar, writing: > "When the BRICS gold-backed stablecoin comes out trade in USD will drop hard, central banks will exit USD, and the US money printing Ponzi scheme will burn. 14% of global GDP will shift from the US to other nations by 2030." Since the beginning of this year, the Reserve Bank of India has been actively accumulating gold. Opposition to the US Dollar has accelerated in recent years, with several countries accusing the US of weaponizing the global reserve currency through sanctions. The USD’s share of global reserves has dropped from 74% to 52% over the last two decades. In this context, Russia has legalized the use of Bitcoin for international trade.
BRICS Bank is taking significant steps to reduce dependence on the US Dollar by promoting the use of local currencies and developing a gold-backed stablecoin. These measures not only strengthen the economies of member states but also provide them with greater financial independence.
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