Hey, Amy! I read that Putin and BRICS want to create a new financial system without the US dollar. What’s that about?

Oh, that’s right. At the recent BRICS summit, Putin talked about reducing the world’s reliance on the dollar by using digital currencies instead. The idea is to use blockchain and central bank digital currencies, or CBDCs, for cross-border payments.

CBDCs? Aren’t those like digital versions of regular money?

Exactly! It’s like digital cash issued by central banks. BRICS wants to use these instead of the US dollar for transactions between their countries, making it harder for the US to control or block payments.

Oh, so it’s a way for them to avoid US sanctions?

Yes, that’s a big part of it. By creating their own system, BRICS countries could avoid the US financial network entirely. Russia, for example, is already testing the digital ruble for this purpose.

Wow, that’s smart. But how would it work without using the dollar at all?

They’re proposing a new payment system called BRICS Pay. It would use blockchain technology, so instead of relying on US banks, central banks from each BRICS country would directly manage the transactions.

I see. But does that mean the dollar would be completely useless then?

Not exactly. It’s more about giving countries an option to trade without needing dollars. If they succeed, the dollar won’t disappear, but its influence might weaken.

Makes sense. But why are digital currencies and blockchain such a big deal for this plan?

Blockchain provides a decentralized way to manage payments, so no single country controls everything. It’s secure, transparent, and fast—transactions that used to take days could happen in seconds.

Oh, like cutting out the middleman! But doesn’t the US have any plans to stop this?

They’re trying. The US Treasury wants more power to regulate foreign crypto exchanges and prevent countries like Russia from using stablecoins like USDT to bypass sanctions.

So, it’s like a digital financial chess game—each side is making moves to control the market.

Exactly! It’s all about who can set up a system that others will trust and use. The BRICS countries think their blockchain-based system could be a real alternative, but it’s a big challenge.

Wow, the future of money sounds intense. I guess digital currencies are going to be more important than ever.

Definitely! It’s not just about tech; it’s about who controls global trade and finance. That’s why these developments are so important.