Putin Proposes BRICS Digital Currency to Boost Emerging Economies

• Putin’s digital currency plan aims for non-inflationary growth in BRICS and developing nations.  
• BRICS digital currency seeks to create financial independence from Western-dominated systems.  
• Russia’s Central Bank views Ripple as a promising solution for cross-border digital payments.

Vladimir Putin has announced the introduction of a new digital currency investment tool for BRICS nations. This plan, which Putin shared during a BRICS media meeting, aims to offer a non-inflationary instrument to boost economic growth in developing economies.

The plan marks a shift from traditional financial systems dominated by Western institutions, opening the door for more independent financial ecosystems in growing markets.

Digital Currency as a Strategic Tool for BRICS Nations

Putin’s proposal, actively discussed with key BRICS partners such as China, India, and Brazil, seeks to leverage digital currencies to promote investment and economic growth.

According to the Russian leader, the initiative isn’t limited to BRICS nations alone but also extends to other developing economies with high growth potential. Putin assured that the tool will be overseen by BRICS institutions, ensuring it remains non-inflationary and supports long-term development.

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Putin pointed out that consultations are already going on with partners from China, India, and Brazil, and discussions with South Africa are planned for the near future. He noted the importance of strengthening economic cooperation within the BRICS alliance and other developing nations.

One of the central elements of Putin’s plan is focusing on a non-inflationary digital currency system. The proposal aims to provide a stable and controlled tool for investments that will not contribute to inflationary pressures. 

Additionally, Putin highlighted that the digital currency system will benefit the Global South’s economic interests and could become a reliable non-inflationary investment instrument.

Russia’s Central Bank Considers Ripple for Cross-Border Payments

Russia’s Central Bank has shown interest in Ripple as a solution for cross-border payments. In its report titled “Digitalization of Payments and Implementation of Innovations in the Payment Market (2024),” the bank underscored Ripple’s potential role in global finance.

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Despite ongoing legal uncertainties surrounding Ripple’s case with the U.S. Securities and Exchange Commission (SEC), Russia’s Central Bank sees the technology as a promising solution for international transactions.