Report: BRICS Abandons Gold-Backed Currency Idea, Embraces Bitcoin and USD Alternatives

• India’s Foreign Secretary elucidates that BRICS is emphasizing trade in national currencies, sidelining the common currency concept.
• The forthcoming BRICS summit in Johannesburg won’t feature discussions on a shared currency, despite popular speculation.

BRICS Bloc: National Currency Trade Over Common Currency Ambitions

In a world where economic interdependencies are increasing, the discussions around a common currency among the BRICS nations (Brazil, Russia, India, China, and South Africa) have garnered significant attention. However, shedding light on this subject, India’s Foreign Secretary Vinay Mohan Kwatra clarified the bloc’s stance.

Debunking Common Currency Speculations

Addressing a media briefing, Kwatra stated that the primary objective of the BRICS discussions hasn’t been the introduction of a common currency for the member nations. Instead, a significant chunk of these discussions revolves around promoting trade in their respective national currencies. Highlighting the intricacies of launching a shared currency, Kwatra noted,

“Common currency discussions have several prerequisites before you can even delve into a common currency framework.”

Elaborating further, he differentiated the notions of national currency trade and a common currency concept. The essence of the BRICS framework and the substance of its dialogues have predominantly centered around trade within national boundaries, using national currencies. This indicates a strategic departure from the broader and more complex idea of a shared currency.

Corroborating Kwatra’s assertions, India’s Minister of External Affairs, S. Jaishankar, also confirmed the absence of any ongoing dialogues regarding a common currency within the BRICS framework.

With the upcoming BRICS summit set to take place in Johannesburg from August 22-24, speculations are rife about the potential discussions on a shared currency. However, reinforcing the stance conveyed by Kwatra, the chief South African diplomat overseeing BRICS relations has reassured that the common currency subject won’t feature in the summit’s agenda.

The proposal of a unified BRICS currency has stirred several debates in financial circles. Proponents like Robert Kiyosaki, the acclaimed author of “Rich Dad Poor Dad,” envisage this currency to challenge, if not dethrone, the dominance of the U.S. dollar. On the contrary, skeptics like British economist Lord Jim O’Neill, known for introducing the acronym BRIC, have dismissed the idea, labeling it as “ridiculous” and “embarrassing.”

As BRICS nations continue their journey of economic collaboration and growth, it’s evident that their immediate focus is on harnessing the potential of national currencies to foster trade, rather than venturing into the complex realm of shared currency.