what will the new brics currency look like until now there have been speculations about whether brics will launch a new currency in competition with the US dollar or not even though there were official talks on launching a new payment system like Swift no official news came about bricks currency but things have changed now brics is thinking of various options considering what to use to Peg the new currency in this respect Russia has increased its efforts and wants to launch the currency before its chairmanship ends this year as of now brics has proposed either launching a cryptocurrency pegged by the Chinese Yuan or a whole new currency pegged by gold how will they work and whether both will be picked by bricks in this video let's find out let's first talk about brics working on launching crypto exchanges and a brics staple coin it's been about 15 years since brics was launched however until now it could not develop its own currency but Russia is changing everything because it has the opportunity being the chairman of the alliance in this capacity Russia has announced plans to launch state-backed cryptocurrency exchanges and develop a brics peg stable coin linked to the Chinese Yuan but these are not just plans Russia plans to set up two major cryptocurrency exchanges in Moscow and St Petersburg these exchanges aim to enhance foreign economic activity by enabling digital transactions and integrating digital payments for trade settlements the Moscow exchange is expected to be established as a separate entity under an experimental legal framework while the St Petersburg exchange could leverage the existing infrastructure of the St Petersburg currency exchange SPC the primary focus of these exchanges will be the creation and use of stable coins stable coins are actually cryptocurrencies typically pegged to a reserve of assets such as National currencies or a basket of currencies Russia is particularly interested in developing stable coins linked to the Chinese rmbe R&B uan and the brics currency basket this approach aims to strengthen economic cooperation among brixs nations while reducing Reliance on the US dollar all member countries would get the chance to use a single stable coin which will be backed by their National currencies in this way using stable coin will bring indirect benefits for all members as the demand for their National currencies will increase in the market driving their value high but what about the possibility of the stable coin being pegged with only Chinese Yuan launching crypto exchanges is a broad plan but for now focusing on establishing infrastructure that could sustain a single ready to use stab coin is the priority Russia and its bricks partners are exploring the launch of a stable coin pegged to the Chinese Yuan at a 1:1 ratio this move aligns with China's goal to position the UN as a Global Currency and reflects a broader strategy to reduce dependence on the US dollar in international trade the stable coin is expected to offer a stable secure method for conducting transactions minimizing concerns about price volatility but can this staple coin be pegged by gold well there have been no official statements about it but there is speculation that the brics stable coin could be backed by gold given the substantial reserves held by bricks country countries this backing would not only provide solid support for the currency but also attract Nations seeking alternatives to Dollar denominated assets but what is India doing about Brick's plan to launch a stapler coin well as Russia advances its digital currency initiatives India is working on establishing a comprehensive regulatory framework for cryptocurrencies the Indian government is actively seeking public input on crypto regulation with a detailed framework expected to be unveiled later this year there are reports that India used cryptocurrencies to buy oil from the UAE here's a reminder to please like and share the video and subscribe to our channel to watch more videos on Africa's geopolitics economy and changing landscape let's continue now but how will this Empower bricks the launch of a crypto sta coin by the brics Nations has the potential to transform how these countries conduct trade by moving away away from traditional Financial systems and encouraging closer economic ties anchored to the Chinese Yuan this stab coin would utilize the powerful infrastructure of blockchain technology which offers several advantages for international Commerce until now this technology was being used by individuals only allowing them to send and receive money without going through the typical payment system like Swift however brics is becoming the First Alliance to adopt cryptocurrencies by impl menting a blockchain-based stable coin brics countries could facilitate real-time settlements and greatly reduce the risk of Fraud and errors often found in traditional banking systems the use of blockchain technology for their stable coin would enable brics members to streamline all types of trade unlike traditional Financial systems that rely on intermediaries such as Banks and Western Le Payment Systems blockchain allows for direct secure transactions between trading partners no matter where they are located this is particularly beneficial for brics Nations which span multiple continents and operate under different economic policies and regulations blockchain technology thus helps create a unified efficient trading environment promoting stronger economic ties among these countries moreover tying the bricks sta coin to the Chinese uan would bring a new level of stability and predictability to trade within the brics block unlike other cryptocurrencies that can be highly volatile a stable coin maintains its value by being pegged to a more stable asset in this case the Chinese Yuan pegging the stable coin to the U1 at a 1:1 ratio would ensure its value remains consistent minimizing volatility and providing a reliable medium of exchange for international trade this stability is crucial for businesses and governments that rely on predictable costs and revenues a unpeg stable coin would allow bricks members to avoid the risks associated with fluctuating exchange rates which can complicate international trade agreements and impact pricing strategies furthermore using a stable coin tied to the uan would decrease Reliance on the US dollar which currently dominates global trade and finance by shifting to a stable coin based on the U1 brics countries could protect themselves from Dollar fluctuations and potential US Financial sanctions increasing their economic independence but things don't stop here linking the bricks sabl coin to the Chinese Yuan would boost the Yuan status as a Global Currency challenging the current dominance of the US dollar as more International transactions are conducted using the brics stable coin demand for the unan would rise enhancing its value and making it a more attractive Reserve currency for central banks around the world this shift would strategically position China at the center of the Global Financial system granting anting it Greater economic power and influence as the stable coin gains wider acceptance it could lead to broader use of the UN in international markets further firming its role as a major Global Currency however the biggest of the advantages would be to dodge sanctions adopting a bricks backed stable coin would provide significant benefits to member countries like Russia which are currently facing International sanctions by moving away from a dollar-based system and using a blockchain based stable coin Russia and other brics countries could bypass traditional Financial channels that are subject to US influence and sanctions this would allow them to continue engaging in global trade without the constraints imposed by sanctions stabilizing their economies and ensuring continuous economic activity but what about the possibility of a new currency that will be backed by gold launching stab coin is not the only option brics is entertaining the new currency can be backed by gold a strategic Choice designed to ensure its stability Gold's inherent value and stability make it an ideal foundation for a new currency system similar to the gold standard that once underpinned the Breton Woods agreement by anchoring the currency to Gold brics seeks to establish a secure and dependable medium of exchange that can withstand global economic fluctuations and provide a safe platform for crossb settlements Russia is particularly eager to see the launch of this new currency given its current exclusion from the Western Financial system due to sanctions a brics currency that operates independently of existing Financial networks such as Swift is especially appealing to Moscow which is looking for alternative methods for global trade and financial transactions the decision to back the new brics currency with gold has led member countries to increase their gold purchases potentially in preparation for the currency's launch whether bricks is preparing to launch a stable coin a gold-backed currency or both one thing is clear the US dollar will soon be replaced Russia is more determined than ever to establish all infrastructure that would result in launching a new brics currency officially by the end of 2024 what do you think should brics launch a new currency pegged by gold or a stable coin powered by blockchain isn't it true that stable coin would be more beneficial due to its safety and already developed infrastructure in the comment section right below let us know when you expect bricks currency will completely replace the US dollar do you want to watch more videos like this one if yes subscribe to our Channel and press the Bell icon next to it we have decided to bring videos on something nobody talks about African politics economy and increasing power thanks for watching and until the next video stay tuned tell us what you think 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