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The BRICS nations are reportedly working on developing a new form of currency, which is expected to be discussed at the next BRICS leaders’ summit, according to a top Russian official. “The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future,” the deputy chairman of the Russian State Duma was quoted as saying.

New Currency for BRICS Countries

The BRICS countries are reportedly working on creating a new form of currency with a plan to present its development at the BRICS leaders’ summit in August, State Duma Deputy Chairman Alexander Babakov said Thursday on the sidelines of the India-Russia Business Forum in New Delhi. This forum marks the commencement of international events at the St. Petersburg International Economic Forum 2023. The top Russian official was quoted as saying:

The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future. I think that at the BRICS [leaders’ summit], the readiness to realize this project will be announced, such works are underway.

The BRICS nations are Brazil, Russia, India, China, and South Africa. Several other countries have expressed interest in joining the economic bloc, including Argentina, Iran, Indonesia, Turkey, Saudi Arabia, and Egypt. South Africa will host the next BRICS summit in August.

Settlements in national currencies have commenced among the BRICS nations. Recently, Russian President Vladimir Putin and Chinese President Xi Jinping agreed to adopt the Chinese yuan as a settlement currency with emerging economies. The Chinese government has also signed a bilateral deal with Brazil to facilitate trades using their national currencies.

Babakov left open the possibility of a unified currency arising within BRICS, potentially backed by gold as well as other commodities, such as rare-earth elements or land.

At the India-Russia Business Forum on Thursday, Babakov emphasized that India and Russia “should institute a new economic association with a new, shared currency,” but noted that China could play a crucial role in developing a common currency for the three nations. He was quoted by India TV as saying:

New Delhi, Beijing, and Moscow are the nations that now institute a multipolar world that is endorsed by the majority of governments. Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S. dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.

The Russian official also expressed satisfaction with his country’s economic situation while criticizing U.S. President Joe Biden and the European Union. He argued that the dollar and the euro serve the interests of Washington and London rather than the broader global community, emphasizing that they do not recognize Russia, India, and China as equal counterparts.

What do you think about the BRICS nations developing a common currency? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.