Russia has disclosed its plans to introduce two state-associated cryptocurrency exchanges aimed at incorporating digital payments for trade transactions. This initiative comes as a strategy to counteract the impact of US sanctions and keep the Russian economy viable. Proposed to be based in Moscow and St. Petersburg, these exchanges are part of Russia’s intention to launch a new stablecoin tied to the Chinese yuan.
Hailing from the BRICS alliance, Russia’s audacious strategy involves tying the new stablecoin to the Chinese yuan on a 1:1 basis. This approach would maintain stable pricing for the coin, fostering safe and stable transactions void of price instability concerns.
The yuan-pegged BRICS stablecoin is envisioned to help Russia side-step US sanctions and reduce dollar dependancy. Consequently, both the Russian ruble and Chinese yuan are expected to be the largest beneficiaries of this new payment system, with the US dollar effectively removed from this equation.
China’s objective to establish the Chinese yuan as the dominant international currency is receiving support from Russia’s efforts. The launching of the yuan-linked BRICS stablecoin marks the second phase of a process that started with de-dollarization.
The US dollar might soon face stiff competition as momentum gathers behind the de-dollarization initiative. As the BRICS alliance propels the Chinese yuan to the forefront of international transactions, an increasing number of developing nations are beginning to settle parts of their trade in yuan, further diminishing the usage of the US dollar.