A group of economically-aligned nations plan to create a new currency that could reduce the world’s dependence on the US dollar and the euro, according to a new report.
The group of emerging economies, known collectively as BRICS, are exploring how such a currency would be structured, reports the Russian state-owned news agency Sputnik.
The new dollar alternative could be backed by gold, additional rare earth metals or something else entirely, says State Duma Deputy Chairman Alexander Babakov.
“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 coming BRICS Summit,the readiness to realize this project will be announced. Such works are underway.”
The news comes days after China executed its first liquefied natural gas (LNG) trade using the yuan instead of the dollar, as reported by Reuters.
The acronym BRICS stands for the countries of Brazil, Russia, India, China and South Africa.
A number of additional nations, including Saudi Arabia, Argentina, Iran, Indonesia, Turkiye and Egypt, have reportedly expressed interest in joining the alliance.
The upcoming BRICS summit is set for August 22nd in South Africa.