The BRICS Alliance is studying the creation of an innovative currency and plans to make proposals on its establishment at the forthcoming South Africa Summit Alexander BabakovDeputy Chairman of the Russian Parliament, the State Duma.

Speaking at the St. Petersburg International Economic Forum event on Thursday in New Delhi, India, Babakov said the plan is to first shift to using local currencies in transactions, and then introduce and circulate a digital or alternative form of breakthrough currency bring near future.

Babakov expects the BRICS leadership summit to reveal readiness to implement this particular initiative, with work on the project continuing, according to Sputnik news agency reported.

Babakov did not account for the potential emergence of a single currency that could be used among the BRICS countries.

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The proposed currency would not only be backed by gold, but also by other assets including rare earth elements or even land.

The BRICS association comprises the world’s most important emerging countries, including Brazil, Russia, India, China and South Africa.

Several nations such as Argentina, Iran, Indonesia, Turkey, Saudi Arabia and Egypt have announced their intention to become part of this economic bloc.

The upcoming BRICS summit is scheduled for August 2023.

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