HomeNewsFrom Greenback to Crypto: BRICS Pioneers Bold Shift to Bitcoin and Rupee

From Greenback to Crypto: BRICS Pioneers Bold Shift to Bitcoin and Rupee

- Advertisement -
  • The Indian Government forges ahead with a ground-breaking agreement with the UAE to utilize the Indian Rupee for bilateral trade, forsaking the traditional U.S. dollar.
  • The IMF, though having yet to see a specific proposal for a common BRICS currency, acknowledges slow but tangible shifts in the currency composition of reserves and trade.

Navigating the Evolution in Global Commerce

Stepping boldly onto the global stage, India, a key BRICS nation, is revolutionizing its approach to international commerce by advocating for local currencies in cross-border transactions. In a landmark move, India has persuaded the United Arab Emirates (UAE) to forego the conventional U.S. dollar in favour of settling bilateral trade transactions in the Indian Rupee.

A strategic meeting between Indian Prime Minister Narendra Modi and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, culminated in an agreement to construct a real-time payment link for local currency remittances. As explained by the Reserve Bank of India (RBI), this payment infrastructure will streamline cross-border transactions, spurring economic cooperation between the two nations.

- Advertisement -

In the fiscal year 2022-23, India and the UAE recorded an impressive bilateral trade volume of $84.5 billion. Notably, these transactions, previously resolved using the U.S. dollar, will now utilize the Rupee, bolstering its international significance.

The Ripple Effect on the Oil Trade and U.S. Dollar

As one of the world’s top oil importers, India’s decision to employ the Rupee for global trade is expected to fortify its domestic economy. The agreement with the UAE, a member of the top ten oil exporting nations, represents a potential shake-up for the U.S. dollar’s dominance in international transactions and the oil trade.

In the previous fiscal year, India saved a substantial $7 billion by transacting with the Chinese Yuan for oil trade. This was a move necessitated by U.S. sanctions, leading to the laundering of Russian oil via Saudi Arabia and China. These nations then traded the oil to Europe, India, and other regions using their native currencies, thus bypassing the U.S. dollar.

- Advertisement -

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

An Uncertain Future for a Common BRICS Currency

The International Monetary Fund (IMF) has yet to encounter a formal proposal concerning a unified BRICS currency. Nonetheless, it recognizes “slow-moving trends” suggesting an ongoing alteration in reserve and trade currency compositions.

Julie Kozack, Director of the IMF’s Communications Department, highlighted that any transition in the currency composition of reserves and trade is historically slow. She pointed out the gradual decline of the U.S. dollar’s share in global foreign reserves from about 70% in 1999 to nearly 58% by the end of the last year.

Despite media claims of a gold-backed BRICS currency in the works, Leslie Maasdorp, Vice President and Chief Financial Officer of the New Development Bank (BRICS Bank), downplayed such notions, describing the creation of an alternative to the USD as a “medium to long-term ambition.” Russia’s central bank governor echoed this sentiment, emphasizing the multifaceted challenges and complexity of implementing such a project.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Brian Johnson
Brian Johnson
A dedicated Bitcoin journalist passionate about uncovering the latest trends, developments, and innovations in the world of cryptocurrency, while delivering engaging and well-researched articles to inform and educate readers on the dynamic digital finance landscape.
- Advertisment -spot_img