Experts in Brazil predict that leaders of the BRICS nations will agree to launch a digital fiat currency for the bloc during an upcoming summit. It is expected that the coin could be introduced within the next five to 10 years. Evandro Caciano, the head of foreign exchange at Trace Finance, stated that working groups should be established during the summit to address the matter. Milena Araújo, an analyst at Nexgen, also expressed optimism about a BRICS-issued digital currency and anticipated that discussions would begin during the event in Johannesburg, South Africa. Caciano suggested that a single digital currency for the bloc could be issued by the BRICS bank and regulated by it. However, he acknowledged that the process may take years to complete.
The idea of a BRICS digital coin is gaining momentum due to the current global economic climate, with the United States facing its worst economic crisis in history. Brazilian President Luiz Inacio Lula da Silva has expressed support for the creation of a common currency that would facilitate trade between BRICS countries and potentially replace the US dollar in trade deals.
Discussions regarding the launch of a digital token have been ongoing among the BRICS nations since 2019. China, Brazil, and Russia have made significant progress with their own central bank digital currencies (CBDCs), namely the digital yuan, the DREX, and the digital ruble, respectively. These countries have also explored the possibility of conducting cross-border trade using their CBDCs. Russia and potential BRICS member Iran have even considered co-launching a gold-pegged stablecoin.
While some experts remain skeptical about the feasibility of a common currency for the bloc, the BRICS summit is a platform where the issue has been debated in the past. The summit, the 15th of its kind, will also address the issue of accepting membership applications from other countries. Nearly two dozen countries, including Venezuela, Vietnam, Indonesia, Saudi Arabia, Iran, Argentina, Cuba, Nigeria, and Thailand, have expressed a desire to join BRICS.