BRICS Founder Russia has unveiled plans to launch state-backed crypto exchanges with the Chinese Yuan and BRICS-pegged stablecoins to bypass US sanctions. The US sanctions have made The country find alternative payment methods to keep its economy afloat. The two cryptocurrency exchanges will operate in two different cities, one in Moscow and the other in St. Petersburg. In addition, Russia also plans to launch a new stablecoin that will be linked with the Chinese yuan, according to Russian state media.
The bold plan is to peg the Chinese yuan with the new BRICS crypto-based stablecoin at a 1:1 ratio. This makes its price remain stable with no volatility. Additionally, it is relatively safe to initiate transactions with no concerns about fluctuating prices.
Russia To Peg the Chinese Yuan With New BRICS Stablecoin
The Chinese yuan-linked BRICS stablecoin will help Russia bypass the US sanctions and end dependency on the dollar. Therefore, the Russian ruble and the Chinese yuan will benefit the most when trade is settled in the new payment mechanism. The US dollar will play no role in the payment system making local currencies take the significant share of settlements.
China is advancing to make the Chinese yuan the sole global currency. In turn, Russia is helping the country to achieve the milestone. The first step is de-dollarization, and the second is the new Chinese yuan-linked BRICS stablecoin.
Also Read: BRICS: New Gold-Backed Currency Gains Steam & Challenges the US Dollar
The US dollar could face severe challenges in the coming years as the de-dollarization agenda is gaining steam. Additionally, the BRICS alliance is pushing the Chinese yuan at the forefront of all cross-border transactions. Many developing countries have already started settling a portion of their trade in the Chinese yuan and not the US dollar.
