• Home
• /
• KT Network

BRICS nations working on new currency system, Creed&Bear weighs in

A new digital currency could bypass intermediaries like banks and payment processors, facilitating easier trade between BRICS member nations

Creed&Bear, a global financial services firm, is providing insights on the potential impact of the announcement that the BRICS nations — Brazil, Russia, India, China, and South Africa are considering creating a new common currency for payment settlements between member states.

Key Points:

What is BRICS and how could a new currency system affect global trade?

BRICS is a group of five emerging market economies that include Brazil, Russia, India, China, and South Africa. Initially coined as BRIC in 2001 by a Goldman Sachs economist, Jim O'Neill, to describe the economic potential of these four emerging markets, South Africa was later added in 2010 to form the BRICS. These countries were selected based on their fast-growing and emerging market economies, low labour costs, favourable demographics, and abundant natural resources. Goldman Sachs claimed that these economies would dominate the global economy by 2050.

A new common currency for payment settlements between member states could allow for ease of transactions. It is hoped that this would facilitate easier trade between BRICS member nations, particularly as they continue to face economic sanctions and other trade barriers from the United States and Europe.

Potential challenges and benefits for companies like Creed&Bear

The proposed changes in the global financial system present both challenges and opportunities for businesses such as Creed&Bear. As a renowned global firm, Creed&Bear is well-prepared to navigate the evolving landscape of international trade. However, adapting to a new currency system will require addressing potential challenges, including the varying economic systems and levels of development among the BRICS nations. Additionally, any shift away from the US dollar, the current dominant global reserve currency, could have far-reaching implications for the global financial system and the US economy.

Andrea Nardon, chief investment officer at Creed&Bear, said: "Emerging economies are showing early signs of adopting digital currencies as a solution to challenges within the traditional banking system. The discussions among BRICS countries regarding the creation of a separate currency pose potential risks to the supremacy of the US dollar as the world's reserve currency. However, the establishment of a new currency is a complex process that will likely require time to gain widespread acceptance. The global financial system is currently undergoing significant transformations, and cryptocurrencies hold the potential to overcome limitations of the traditional banking system."

How to adapt business strategies in response to the changing landscape of international trade

Despite the potential challenges, Creed&Bear sees opportunities in the changing landscape of international trade. With a team of seasoned professionals and a commitment to innovation, Creed&Bear is well-positioned to help clients adapt their business strategies in response to the changing financial system. Creed&Bear has the expertise and resources to navigate the complex financial landscape and help clients make informed decisions. As the global financial landscape continues to evolve, Creed&Bear remains committed to providing top-tier services and tailored solutions to meet the needs of their clients worldwide.

Follow Creed&Bear on socials Twitter | LinkedIn | Medium

For more information, visit https://creedandbear.com/

For media inquiries, please contact: pr@creedandbear.com

— Anastasia Gergun is the contributor at Bitmedia.io.