BRICS, BIS & China's CBDC: A Push to Ditch the US Dollar?
Is the global financial landscape about to shift? The BRICS collective, comprising Brazil, Russia, India, China and South Africa, is working on a common currency in an attempt to ditch the US dollar and push back against its dominance. This ambition is gaining traction, particularly with China's central bank digital currency (CBDC) project, and a surprising ally is emerging: The Bank for International Settlements (BIS).
The BIS Urges Nations To Join China’s, CBDC Project & Ditch The US Dollar
💡💡 The Bank for International Settlements (BIS), has officially started to urge, nations to join China’s CBDC project. This move signals a significant endorsement and potentially accelerates the adoption of digital currencies for international trade. But what's driving this push, and what are the implications?
mBridge: A Successful CBDC Pilot
The Bank for International Settlements (BIS) and four central banks have completed a successful pilot of the use of central bank digital currencies (CBDCs) by exploring the viability of cross-border payments. The mBridge project, a key component of this initiative, aims to streamline international transactions and reduce reliance on traditional banking systems.
The Bank for International Settlements (BIS) has been involved with the mBridge cross border CBDC payment system for four years. Today the General Manager of BIS, Agustin Carstens, continues to highlight the potential of CBDCs to enhance financial efficiency and inclusion. This long-term commitment from the BIS underscores the growing importance of digital currencies in shaping the future of global finance.
What Does This Mean for the US Dollar?
The concerted efforts of BRICS nations and the BIS to promote CBDCs, especially China's project, pose a challenge to the US dollar's status as the world's reserve currency. While a complete dethroning is unlikely in the short term, increased adoption of alternative currencies and digital payment systems could erode the dollar's dominance and lead to a more multi-polar financial world.
Stay tuned for further updates on this developing story as BRICS nations and the BIS continue their efforts to reshape the global financial landscape.