CIS Alliance Shifts Trade Focus to Local Currencies and Considers Crypto Adoption

CIS Alliance Embraces Local Currencies for Trade

The CIS alliance, comprising 12 countries, has initiated a strategic move towards conducting trade settlements using their respective local currencies. This decision aims to lessen the reliance on the US Dollar, ultimately reducing economic strains within the region.

Russia’s Influence on the Trade Policy Shift

Under the guidance of Russia, a key member of both the CIS and BRICS alliances, the CIS bloc has made a significant shift away from the dominance of the US Dollar in trade transactions. The adoption of national currencies for cross-border trades is seen as a substantial economic boost for all member countries.

CIS’s Gradual Departure from the US Dollar

In line with the de-dollarization efforts within the BRICS and now the CIS alliance, a considerable 85% of cross-border transactions have been settled in local currencies rather than the US Dollar this year. Such a move adds pressure on the global significance of the US Dollar in trade dynamics.

Incorporating Crypto into Trade Settlements

Looking ahead, the CIS alliance is considering the integration of cryptocurrencies for future cross-border trade settlements. This trend aligns with the evolving nature of payment services globally, offering faster, cheaper, and transparent transactions, especially in cross-border scenarios due to the inherent features of cryptocurrencies.

The BRICS’ Interest in Alternative Financial Systems

Not only focusing on local currencies and crypto, the BRICS alliance is also exploring the use of gold as a potential challenger to the US Dollar dominance. While no official digital asset has been declared as a standard currency among member nations, the evolving landscape of blockchain technology and global financial systems suggests that such decisions may not be too far off.