BRICS Bank President Pushes for US Dollar Exit, Bitcoin Emerges as Key Player

• The BRICS New Development Bank prioritizes reducing US dollar reliance by promoting the use of local currencies.
• President Diane Rousseff announced that up to 30% of the bank’s total funding will be in local currencies, aiming to boost their circulation and reduce dependence on the USD.

The BRICS nations bloc has been actively working towards de-dollarization with the BRICS bank president recently assuring that moving away from the U.S. Dollar remains their main focus area. As a result, the New Development Bank has continued to promote local currencies over the USD.

As part of the de-dollarization plan, the New Development Bank is also initiating major measures such as increasing lending in the alliance’s currencies. This ensures that more and more local currencies remain in circulation for trade among the BRICS nations thereby avoiding the USD to a great extent.

In a recent statement, BRICS New Development Bank President Diane Rousseff emphasized the bank’s commitment to reducing reliance on the US dollar. She highlighted a strategic shift towards promoting alternative currencies within the alliance. This transition will further strengthen as the bank is likely to play a significant role in the bloc’s upcoming payment system, per the CNF report. Thus, speaking at the 9th annual meeting of the New Development Bank, Diane Rousseff 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.

She further added that debt in the developing nations has become a major issue, stating that the BRICS bank’s recent pivot could help mitigate the issue. “Our bank can play a significant role in addressing these challenges,” she said.

BRICS Steering Development in Gold-backed Stablecoin

Finding a safe haven in the traditional yellow metal Gold, the BRICS nations are working towards having a gold-backed stablecoin among the nation bloc, reported CNF. Apart from the founding members of BRICS, other nations that have recently joined the bloc have been backing this project. Popular tech entrepreneur Kim Dotcom said that the BRICS gold-backed stablecoin could potentially send shockwaves to USD, leading to its instability. He wrote:

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 the year, the Indian central bank – Reserve Bank of India (RBI) – has been on a gold accumulation spree. The opposition to the U.S. Dollar has accelerated in the past few years, with several countries accusing the United States of weaponizing the global reserve currency through sanctions. Over the last two decades, the USD’s share of the global reserve has dropped from 74% to now at 52%. As a result, Russia has recently legalized the use of Bitcoin for global trade, reported CNF.