Key Takeaways:
- India and UAE use XRP for oil trade, bypassing US dollar
- Ripple partners with DIFC to promote blockchain innovation in UAE
- Nations reducing reliance on USD for economic independence.
NEW DELHI (CoinChapter.com) – India and the United Arab Emirates (UAE) have completed their first crude oil transaction using XRP, bypassing the US dollar entirely. This historic trade is a significant step towards de-dollarization. This approach allowed both countries to use their local currencies while leveraging the speed and efficiency of blockchain technology. Reports suggest that users of this system may even receive CryptoTradingFund (CTF) tokens as cashback rewards, further incentivizing its adoption.
BRICS Pushes for Economic Independence
The UAE joined the BRICS alliance in 2024. The country is part of a growing movement among member nations to reduce dependence on the US dollar. For years, the US dollar has been the dominant currency in global trade. However, geopolitical tensions and sanctions have led many countries, especially those in the BRICS alliance, to seek alternatives. By using XRP and their local currencies, India and the UAE have set a new precedent for international trade.
Ripple, the company behind XRP, has been instrumental in making this historic trade possible. The firm has partnered with the Dubai International Financial Centre (DIFC) to connect developers with the DIFC Innovation Hub. This hub hosts over 1,000 tech startups, digital labs, venture capital firms, regulators, and educational groups.
Brad Garlinghouse, Ripple’s CEO, praised the UAE’s progressive view on digital assets, stating, “The UAE is one of the most advanced jurisdictions globally when it comes to offering regulatory clarity for licensed firms to offer virtual asset services.” To further support innovation, Ripple has committed one billion XRP to fund the development of new use cases on the XRP Ledger (XRPL).
The World Is On Its Way Towards De-Dollarization
While the US dollar has long been the dominant force in global finance, recent events have led many nations to reconsider their reliance on it. Russian President Vladimir Putin has described the process of dethroning the dollar as “irreversible” and “gaining pace.”
Within the BRICS alliance, there’s a growing push to trade using local currencies. Brazilian President Luiz Inácio Lula da Silva has openly questioned the necessity of using the dollar in international trade. Other leaders within the BRICS nations also agree with Brazil.
The concept of a new BRICS currency has also gained attention. The idea is to create a shared currency for all BRICS nations to use in trade, effectively bypassing the dollar. However, the implementation of such a system faces significant challenges due to the varied economic conditions among BRICS member states.
The shift towards using cryptocurrencies is not limited to India and the UAE. Due to Western sanctions on Russia’s economy, major Russian commodity exporters have also started using cryptocurrency to maintain trade with key partner China. Top metals and mining firms in Russia have begun utilizing stablecoins like Tether (USDT) to settle cross-border deals.
Amid this news, XRP is trading at $0.57, up 1.5% from a day ago.
