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An analyst from Trace Finance has implied that a single digital currency, governed and distributed by the New Development Bank (or BRICS Bank), could be initiated by the BRICS countries. Emphasizing that the U.S. is going through its most significant crisis ever, there are anticipations that a shared BRICS currency—potentially rivaling the supremacy of the U.S. dollar—might be a subject for discussion at the forthcoming summit of the economic coalition.
Discussion of BRICS Digital Currency by Analyst
Evandro Caciano, the chief of FX at Trace Finance, talked about the possibility of the BRICS nations implementing a digital currency in a conversation with CNN Brazil, released on Friday. The economic group includes Brazil, Russia, India, China, and South Africa. Pointing out that the U.S. dollar is not as secure as it once was, he warned:
We’re witnessing the most severe crisis in America’s history. This crisis is fundamental, marked by a downgrade in ratings by credit rating agencies, placing the dollar under scrutiny.
The issue of a common currency for BRICS is anticipated to be on the agenda at the upcoming summit, scheduled for Aug. 22-24 in Johannesburg. However, the South African diplomat overseeing BRICS connections has stated that the subject of a shared currency is not planned for discussion at the summit.
Some specialists have put forward the idea that the creation of a shared digital currency, akin to a central bank digital currency (CBDC), could be a way to make a BRICS common currency feasible. Caciano expressed his opinion:
Creating a unified digital currency for the coalition, overseen and issued by the BRICS Bank, would be conceivable.
Nevertheless, Caciano thinks that it would take several years and possibly progress in stages to realize this currency. “The BRICS embracing a digital currency is a project that will take a minimum of five to ten years,” he declared.
Leslie Maasdorp, the vice president and chief financial officer of the New Development Bank, also known as the BRICS Bank, has also recently voiced that creating an alternative to the U.S. dollar is a goal for the “medium to long-term.”
What are your thoughts on the BRICS nations initiating a shared digital currency governed by the BRICS Bank? Share your opinions in the comments section below.
Frequently Asked Questions (FAQs) about fokus keyword: BRICS digital currency
What is being suggested by the Trace Finance analyst regarding the BRICS nations?
A Trace Finance analyst has suggested that the BRICS nations, including Brazil, Russia, India, China, and South Africa, could launch a single digital currency. This currency would be issued and regulated by the New Development Bank, also known as the BRICS Bank. The aim could be to challenge the dominance of the U.S. dollar.
Who is the individual discussing the BRICS digital currency in an interview?
Evandro Caciano, head of FX at Trace Finance, discussed the possibility of the BRICS nations launching a digital currency in an interview with CNN Brazil.
When and where is the economic bloc’s upcoming summit planned?
The economic bloc’s upcoming summit is scheduled to take place on August 22-24 in Johannesburg.
Is the topic of a common BRICS currency on the summit agenda?
South Africa’s diplomat in charge of BRICS relations has stated that the topic of a common currency is not on the summit agenda.
What are the opinions of the BRICS Bank’s executives on creating an alternative to the U.S. dollar?
Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, believes that the development of an alternative to the U.S. dollar is a “medium to long-term ambition.”
How long does Caciano believe it would take to create and implement the BRICS digital currency?
Caciano believes that the creation and implementation of the BRICS digital currency would take years and could happen in phases. He stated that the adoption of a digital currency throughout the BRICS is a project of at least five to 10 years.
More about fokus keyword: BRICS digital currency
- Trace Finance
- New Development Bank (BRICS Bank)
- CNN Brazil Interview with Evandro Caciano
- BRICS Summit in Johannesburg
- Central Bank Digital Currency (CBDC)