Ripple’s XRP ledger is emerging as a key player in the global shift away from the US dollar as India and the UAE have successfully conducted their first crude oil trade using local currencies. The landmark transaction, integrated with Ripple’s CryptoTradingFund (CTF), marks a significant step forward for the BRICS bloc’s efforts to reduce reliance on the greenback.
By leveraging the XRP Ledger, the two nations have not only bypassed the US dollar but also introduced a novel incentive for users. The CTF system rewards customers with tokens for utilizing the platform, adding an extra layer of engagement to the transaction process.
The move comes on the heels of Ripple’s strategic partnership with the Dubai International Financial Centre (DIFC), a deal aimed at accelerating blockchain and digital asset innovation in the UAE. This collaboration underscores the growing influence of Ripple in the region and its alignment with the broader goals of the BRICS nations.
India and the UAE have been vocal proponents of de-dollarization, seeking to reduce their exposure to the US currency and its associated geopolitical risks. While other BRICS members have explored various avenues, including the creation of a new reserve currency, this oil trade represents a tangible step towards a multi-currency world.
The integration of blockchain technology through the XRP Ledger offers the potential for increased efficiency, reduced transaction costs, and enhanced transparency in cross-border trade. As the BRICS summit approaches, the success of this India-UAE deal is likely to be a focal point of discussions among member nations.
Also Read: Zimbabwe Targets BRICS Membership Amidst Booming UAE Trade
If replicated on a larger scale, the use of XRP and similar blockchain platforms could challenge the dominance of the US dollar in global trade. However, the road to a fully de-dollarized world is fraught with challenges, including regulatory hurdles and market volatility.
The coming months will be crucial in determining the extent to which this groundbreaking transaction can be replicated and expanded upon. The world is watching closely as the BRICS nations, with the support of innovative technologies like XRP, reshape the global financial landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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