• A top Russian official has claimed that the BRICS alliance is working on creating its own currency.
• The new currency could benefit China and other BRICS members, and not the West.
• Former Goldman Sachs chief economist Jim O’Neill has called on the BRICS bloc to expand and challenge the dominance of the dollar.
Russia talks up prospects of BRICS countries developing new currency
A top Russian official has reportedly claimed that the countries of the BRICS alliance — Brazil, Russia, India, China and South Africa — are working on creating their own currency. The new currency could benefit China and other BRICS members, and not the West.
Payment Mediums for New Currency
State Duma Deputy Chairman Alexander Babakov made comments at a St. Petersburg International Economic Forum event in New Delhi claiming that both nations should work towards a new medium for payments. He believes digital payments could be most promising and viable while also postulating that it would be secured by gold and other commodities such as rare-earth elements.
U.S Dollar Hegemony
Former Goldman Sachs chief economist Jim O’Neill published a paper calling on the BRICS bloc to expand and challenge U.S dollar hegemony as it plays too much of a part in global affairs today. He believes this would create more balance between countries in terms of economic powerhouses increasing their efforts to distance themselves from US dollar hegemony
Benefits from New Currency
The benefits from this new currency include allowing countries to control their own financial destiny instead of being subject to external forces such as inflation rates or exchange rates associated with one country’s currency dominating over another’s economy. This could improve relations between nations by having more equal footing economically when it comes to trade deals or global investments being made among them all .
Creating a new, independent currency can help level out economic power between nations while giving them greater control over their finances without relying too heavily on any one nation’s currency or government decisions regarding monetary policies related to international exchanges or investments made across borders