Will XRP be the new currency for oil trading on the BRICS network?

Initial progress has been made on Ripple’s partnership with Dubai International Financial Center (DIFC). In a historic move, India and UAE have signed a crude oil deal, ditching the US dollar and opting for XRPL instead. This remarkable agreement signifies a shift away from traditional currencies towards digital assets in global trade. The deal underscores the growing importance and acceptance of cryptocurrencies in international transactions.

• BRICS Nations Complete First Oil Transaction Using XRPL
• Could XRP Serve as a Viable Alternative in the Process of De-dollarization?
• How did the latest oil trades fare using XRP?

BRICS Nations Complete First Oil Transaction Using XRPL

While the U.S. dollar remains the global reserve currency for international transactions, recent geopolitical tensions and sanctions have placed significant pressure on numerous countries, particularly the BRICS nations Brazil, Russia, India, China, and South Africa. Since 2024, Egypt, Ethiopia, Iran, and the UAE have also joined this bloc, all seeking economic independence from the dollar. This shift away from dollar dependency has led to groundbreaking agreements, such as the recent crude oil deal between India and the UAE, which bypassed the US dollar altogether, opting instead for Ripple (XRP). This deal marks a significant milestone in the de-dollarization movement, as India purchases oil from the UAE in local currency, with transactions facilitated through the XRP ledger system. As these countries forge new economic paths, the global financial landscape is undergoing a seismic transformation, with Ripple emerging as a key player in the evolving world of cross-border transactions.

The first oil transaction between BRICS countries has been successfully conducted via the XRP Ledger (XRPL). Earlier, Ripple had partnered with the Dubai International Financial Centre (DIFC), the largest innovation hub in the region, housing over 1,000 technology startups, digital labs, venture capitalists, regulators, and educational institutions. This partnership saw Ripple committing a staggering 1 billion XRP to fund the exploration of fresh applications for the XRPL. Commenting on this collaboration, Ripple CEO Brad Garlinghouse stated, “The UAE stands out globally for its forward-thinking approach in establishing clear regulatory frameworks for licensed digital asset service providers.” This partnership and the recent oil transaction mark a significant milestone in the integration of blockchain technology in international trade, particularly among the BRICS countries.

Could XRP Serve as a Viable Alternative in the Process of De-dollarization?

For years, the dollar has stood as the backbone of global finance, yet its supremacy is slowly starting to erode. The U.S., besides having an unfair advantage, employs its financial system as a tool to enforce sanctions on nations such as Russia and Iran. This has spurred other nations, notably the BRICS countries, to seek out potential substitutes. Russian President Vladimir Putin even declared the elimination of the dollar as “irreversible” and stated that “momentum is building”. Among the BRICS nations, there’s a rising trend to conduct trade in their local currencies instead of dollars. As the global financial landscape shifts, digital assets like XRP emerge as potential alternatives, offering a decentralized and efficient means of exchange. Could XRP be a viable option in this evolving financial paradigm? Its fast transaction speeds and low costs make it an attractive proposition in the face of a changing global economic order.

The President of Brazil, Luiz Inacio Lula da Silva, has questioned the necessity of countries relying on the United States dollar, echoing the sentiments of numerous BRICS politicians. This sparked discussions about introducing a BRICS-specific currency, aimed at facilitating trade among member countries without involving the dollar. However, despite the appealing concept, several obstacles must be addressed before this idea transitions from theory to a widespread reality. Implementing a unified monetary system across the diverse economic landscapes of the BRICS nations poses significant challenges. Nevertheless, could digital assets like XRP emerge as potential alternatives in this de-dollarization discourse? With the evolving cryptocurrency market, XRP stands out as a possible solution for cross-border transactions, bypassing traditional currencies and their associated complexities. Its decentralized nature and fast transaction speeds make it an attractive option for global trade, potentially offering a smoother path towards the goal of financial independence sought by the BRICS nations.

How did the latest oil trades fare using XRP?

The partnership between Ripple and UAE, a BRICS member, offers significant potential for mutual growth. Ripple can solidify its market leadership and boost the XRP price, while UAE and BRICS nations reap the rewards of XRP’s advancements compared to conventional banking systems. This was recently underscored by the crude oil transaction conducted on the XRP ledger. This groundbreaking deal serves as a direct challenge to the dollar’s supremacy in the global oil trade, traditionally dominated by the petrodollar. With this move, Ripple and XRP are poised to reshape the financial landscape, offering an innovative alternative to traditional currency transactions.