20 sats \ 2 replies \ @arrivederci OP 5 Mar \ parent \ on: Kremlin announces creation of blockchain-based payment system in BRICS news
I agree that currency exchange imbalances looks problematic between Russia and India. However Russia and China both have things the other country wants/needs so that can work well, and I think China as a commodity importer and manufactured goods exporter can have good currency exchange relationships with a number of other BRICS countries too (e.g. Saudi Arabia and Brazil).
If you have a national currency I think it makes sense to have a stable coin for that currency too. Quoting from the article :
And I think stable coins do make things more convenient for 'common people and businesses' as they are digitally native tokens and thus allow for easier transactions without necessarily having to deal with banks. This includes small to medium importers and exporters, of course.
Finally, I of course agree with you that they need to properly look at Bitcoin, as it's clearly the end game (at least clear to us). But I think individual countries will do this by themselves and privately, and if they start buying they won't announce it. In the meantime, arrangements for stable coins can be publicly worked out and I believe they can help commerce and help BRICS countries move further away from using USD as an exchange currency.
Stable coin adoption will enable bitcoin adoption in the future
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For sure there's an element of promoting more cross-border trade, but all BRICS nations are commodity producers, China and to an extent, India do produce finished goods, maybe the capital flowing between others does expand the diversity of the economies to trade in more goods, who knows?
I'm not yet convinced of retail use. Stablecoins appeal isn't only the convience, it's the ability to get dollars/dollar exposure without a bank account and without limits on amount, fees, and clearing times.
In South Africa for example there are 2 private companies with local stablecoins no one wants them, people who are banked already have digitally interopetable money with merchants, and unbanked people have cash, so where do stablecoins come in?
Stablecoins have no local interoperability, the stablecoin appeal is to get money out of the local system in a relatively stable store of value. Dollars have performed very well as a savings tool versus holding cash, interest accounts, or even local equities.
What is the appeal for me to get a ruble, rupee, or renminbi stablecoin? It's not giving me any relative protection as a retail user.
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