Ripple XRP is now playing a significant role in trade talks between two BRICS nations: India and the UAE. India has completed its first crude oil transaction with the UAE using local currencies, bypassing the US dollar. The transaction is integrated with the XRP Ledger System CryptoTradingFund (CTF). This enables customers to earn CTF tokens as cashback when using the system.
Earlier this week, Ripple announced a major partnership in the United Arab Emirates (UAE). The company issued a press release unveiling a partnership with the Dubai International Financial Centre (DIFC). The release stated that the collaboration will “accelerate blockchain and digital asset innovation in the UAE.”
BRICS Members India and UAE Use XRP Ledger To Abandon US Dollar
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. It’s a significant development for not just the UAE and India, but all of BRICS.
Also Read: BRICS: India Supports Payment System to Ditch the US Dollar
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.