Both India and the UAE have been strong supporters of the overall BRICS mission to ditch the US dollar. The two nations have struck multiple deals already together, but this is the first of its kind fully bypassing the greenback. It is also the first integrated within the XRP Ledger system. The BRICS initiative has searched for multiple ways to ditch USD in trade, from local currencies to even creating a new currency.
This transaction between India and UAE is bigger than just an oil deal. Indeed, it sets the stage for a multi-currency world to thrive while opening up avenues for different currency usage other than the US dollar. This could mean a more efficient system using blockchain tech while reducing the transfer costs associated with the USD. Itâs a significant development for not just the UAE and India, but all of BRICS.
As the BRICS summit comes closer, the success of this deal and the XRP Ledger in the UAE could be a talking point. The BRICS bloc has seemingly been open to all ideas that support de-dollarization, and the recent oil trade on the XRP Ledger may open the door for more local currency trades using blockchain technology.
