- A New Era of International Transactions
- The Role of Blockchain Technology
- Partnership with DIFC and the Future of BRICS
India and the United Arab Emirates (UAE) have completed their first crude oil transaction using local currencies, bypassing the US dollar. Integrating the XRP Ledger System’s CryptoTradingFund (CTF), a blockchain-based platform designed to enhance financial efficiency and simplify trading, enabled the transaction.
A New Era of International Transactions
This arrangement represents a major turning point in the ongoing BRICS push to lessen reliance on the US dollar. The use of local currencies and blockchain technology eliminates the need for the US dollar, lowers transaction costs, and speeds up financial transactions between the two countries.
The Role of Blockchain Technology
The integration of the XRP Ledger into this transaction represents a strategic innovation in financial technology. This mechanism adds another level of financial incentive and efficiency to the trading process by allowing players to earn CTF tokens as cashback.
Partnership with DIFC and the Future of BRICS
Ripple, the firm behind the XRP Ledger, has further solidified its position in the UAE with the announcement of a major cooperation with the Dubai International Financial Centre (DIFC). This partnership positions the UAE as a major hub for the development of financial technology, driving innovation in blockchain and digital assets in the area. The UAE is likely to embrace blockchain technologies more quickly as a result of its relationship with DIFC, possibly leading to a precedent that other BRICS nations may follow. This trade arrangement signifies a more significant change toward a multi-currency future where blockchain technology is essential to lessening reliance on conventional currencies like the US dollar.
Success in this transaction might serve as a template for similar deals in the BRICS and other frameworks, showcasing blockchain’s ability to expedite and lower the cost of international trade. As the BRICS summit approaches, this development could become a key talking point, showcasing the bloc’s commitment to de-dollarization and the innovative use of technology to achieve these goals.
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