Former President of Russia Dmitry Medvedev has suggested that digital currencies issued by BRICS member states could become the future alternative to fiat currencies. Speaking during the “Knowledge. First” educational marathon in Russia, Medvedev stated that if the euro collapses, it is likely European nations will revert back to national currencies, signalling the rise of the ruble, yuan, Indian rupee, and other BRICS currencies. Medvedev emphasised that the bloc needs to focus on developing digital formats of their national currencies as well as a digital currency issued by BRICS as a whole. The comments come ahead of the BRICS bloc summit, which will be held in Cape Town in June to discuss a range of topics including enlargement proposals.
Medvedev has previously predicted that the US dollar will lose its status as a global reserve currency in 2023 due to increasing use and adoption of digital currencies. Russia has been working towards introducing a digital ruble and payment system that will not restrict digital currency payments, marking an attempt at de-dollarisation amongst Moscow’s efforts to legalise crypto payments in international settlements.
Many experts believe that the advent of digital currencies poses considerable disruption to traditional banking models, and could shift the world’s financial power structure drastically. Adoption within BRICS nations could lead to significant momentum in the sector, potentially softening the impact of US-imposed sanctions on Russia by working to decrease its dependence on the dollar. China has already issued its digital yuan, while India is said to be exploring the development of its own central bank digital currency.
Overall, while it remains to be seen whether digital currencies will become a mainstream alternative to fiat currencies, BRICS nations are certainly taking steps to ensure they are equipped for such an eventuality.
