BRICS Countries Conduct First Oil Trade Using XRP, Bypassing US Dollar
In a groundbreaking move towards economic independence from the US dollar, BRICS countries have made history by conducting a significant oil trade deal using Ripple’s XRP cryptocurrency. While the US dollar is typically used for international transactions, recent geopolitical tensions and sanctions have pushed countries to seek alternatives.
India and the United Arab Emirates (UAE), both BRICS members, recently finalized a deal where XRP was used instead of the US dollar to facilitate the transaction. Although the oil was paid for in the UAE’s local currency, the transaction was processed through the XRP Ledger system.
This development stems from a partnership between Ripple and the Dubai International Financial Centre (DIFC), a leading innovation hub in the region. Ripple has committed to funding the development of new use cases on the XRP Ledger with one billion XRP.
Ripple CEO Brad Garlinghouse commented on the partnership, highlighting the UAE’s progressive approach to regulating digital asset services. The move signifies a shift towards decentralization and reduced reliance on the US dollar in global trade.
The BRICS countries, including Brazil, Russia, India, China, and South Africa, have been exploring alternatives to the US dollar due to unfair advantages and weaponization of the financial system by the US. Russian President Vladimir Putin has called the abolition of the dollar “irreversible,” signaling a growing momentum towards de-dollarization.
While the idea of creating a new BRICS currency is on the table, challenges remain due to varying economic conditions among member states. The recent oil trade using XRP demonstrates the potential for innovative solutions to traditional financial systems and poses a direct challenge to the dominance of the US dollar in global trade.
The partnership between Ripple and the UAE/BRICS countries presents significant opportunities for both parties. Ripple can strengthen its position in the industry and boost the XRP price, while the BRICS countries benefit from the innovation XRP offers compared to traditional financial systems. The use of XRP in the oil trade deal marks a significant step towards challenging the status quo of the Petrodollar system.
For those interested in investing in Ripple (XRP) despite its price volatility, setting up an XRP savings plan is recommended. Explore how XRP has performed over time and how a savings plan can help you benefit in the long run.
