- Vladimir Putin seeks to reduce the reliance on the US dollar.
- The Russian leader said that de-dollarization will help economic development.
- Putin added that all members of BRICS should trade using regional currencies.
Russian President Vladimir Putin attending the 2024 BRICS Summit has voiced strong support for de-dollarization and the adoption of digital assets. Putin highlighted that Russia has become a major advocate for cryptocurrencies, aiming to reduce reliance on the US dollar.
Putin stated that using local currencies instead of the US dollar or euro “helps keep economic development separate from political influences in today’s world.” The Russian president has been promoting de-dollarization since 2012, stressing that it would lead to greater economic independence and minimize geopolitical risks.
Russia hosted the 16th BRICS Summit in Kazan, where members including Brazil, Russia, India, China, South Africa, and new additions like Iran, Egypt, Ethiopia, and the UAE discussed future trade frameworks.
Putin emphasized that BRICS members should prioritize trading in national currencies, pointing out that Russia has already begun doing so with its BRICS partners. Russian Prime Minister Mikhail Mishustin confirmed in August that 95% of trade settlements between Russia and China are conducted using the Ruble or Yuan.
During the 2023 BRICS conference , Putin had declared the era of US dollar in international trade is nearing its end, and that more nations will begin trading in their regional currencies. This prediction is now materializing.
BRICS Digital Currency
At the summit, Putin confirmed that BRICS will adopt digital currencies for intra-member trade, with the goal of fostering economic growth in developing economies. The aim is to launch a non-inflationary currency that shifts financial control away from Western institutions, creating more independent financial ecosystems in emerging markets.
Putin also mentioned that the BRICS digital currency initiative would extend beyond member states, involving other developing nations in the project.
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