BRICS to create its very own central bank
4 mins read

BRICS to create its very own central bank

BRICS is stepping up its game by setting up its own central bank. This is big news because it means they’re planning to issue their own currency. Sergei Ryabkov, Russia’s Deputy Foreign Minister, made it clear that having their own bank is key to this plan.

Currency Development in Full Swing

BRICS has been busy talking about creating their own currency this past year. This move is a part of their bigger plan to depend less on the dollar. Although they’re excited about this, it’s not going to happen overnight. There are some big issues they need to figure out first.

Ryabkov explained all this stuff in detail. He said that to get their currency out there, the first big step is to have a central bank. This isn’t just about printing money. It’s about setting the rules for the money, like how much it’s worth.

“I would not say that this idea has been shelved,” Ryabkov mentioned at a press conference by RIA Novosti. He added that setting up a central bank involves a lot of technical stuff, like making sure there’s one place that manages the issuance of the currency and figuring out the basic interest rate.

Challenges and Timelines

Ryabkov didn’t shy away from admitting that there are some serious challenges ahead. He pointed out that BRICS has gotten a lot bigger — it’s doubled in size! With more countries on board, making big moves like this gets a lot more complicated. But, he’s optimistic. “This does not mean the idea has been postponed,” he clarified.

When asked about when all this might actually happen, Ryabkov was a bit vague but hinted that it wouldn’t take decades—things could start moving much quicker than that.

Meanwhile, on the other side of the world, folks are worried about the US economy. Robert Kiyosaki, the guy who wrote “Rich Dad, Poor Dad,” is talking about a big economic crash. He’s been tweeting that things are going to get rough and giving tips on how to handle the upcoming financial storm.

The US is already in a tight spot with its debt crisis getting worse. This, combined with BRICS moving away from the dollar, could mean big trouble. Kiyosaki is not the only one worried; other experts are also sounding the alarm about the US economy’s fragile state.

Back to BRICS — Ryabkov mentioned that while a common currency isn’t their top priority right now, they could get moving on it really fast if they decide to push forward. This was after a big meeting in February where they talked about a new way to handle payments without needing a digital currency. This involves a new system called the “BRICS Bridge,” and two members, China and the UAE, are also working on something similar called mBridge.

Elvira Nabiullina, who heads the Bank of Russia, talked about how tricky it is to get one single BRICS currency going. She had these talks before more countries joined BRICS.

In another recent update, Ryabkov reiterated that they’re thinking big and bold about the future. “A quite bold, quite innovative scheme in this area will be worked out, and in a future that is not calculated in years and decades, but much faster,” he said.

So, it’s clear that BRICS is on a path to shake things up in the global financial system. They’re not just talking about changes; they’re planning them. And with a central bank in the works, we might see this new currency on the scene sooner than we think.