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BRICS Single Currency Plan Faces Uncertain Future After Death of Iran’s President Raisi

In this post:

  • Iran’s President Ebrahim Raisi was confirmed dead following a tragic helicopter crash that happened on Sunday, 19th May 2024. 
  • BRICS (Brazil, Russia, India, China, and South Africa) expanded its membership at last year’s leaders summit, inviting Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.
  • The BRICS group will create a blockchain-based payment system to increase its role in the international monetary system.

Iran’s President Ebrahim Raisi has been confirmed dead in a fatal helicopter crash that took place Sunday. The BRICS economic block has become globally vocal since Russia invaded Ukraine. In February 2024, Iran officially became a BRICS member as it sought to overcome the impact of US sanctions.  

Iran’s hardline President, Ebrahim Raisi, who died in a helicopter crash, was long regarded as a protege of Iran’s supreme leader and a possible successor to his position inside the country’s Shiite theocracy.

Also Read: BRICS to Create its Very Own Central Bank

Global Reaction to President Ebrahim Raisi’s Death

Political enthusiasts took the death of President Raisi to pass along subtle messages about his role in the Palestine-Israeli war.

The news of President Raisi’s helicopter crash in cloudy weather on Sunday drew further attention to the deceased leader, who is already under sanctions from the United States and other countries for his role in the mass execution of detainees in 1988.

In 2019, the Treasury Department sanctioned Raisi while referring to his involvement in the 1988 executions. The official document reads:

For his administrative oversight over the executions of individuals who were juveniles at the time of their crime and the torture and other cruel, inhuman, or degrading treatment or punishment of prisoners in Iran, including amputations.

US Treasury Department.

Raisi, 63, formerly led Iran’s judiciary. He ran unsuccessfully for president in 2017 against Hassan Rouhani, a comparatively moderate cleric who, as president, negotiated Tehran’s 2015 nuclear deal with Western powers.

Raisi ran again in 2021 in an election when all his possible opponents were forbidden from participating due to Iran’s vetting procedure. He won over 62% of the 28.9 million votes cast, the lowest turnout rate in the Islamic Republic’s history. Millions of people stayed at home, and some ballots were worthless.

President Raisi was not alone in the fatal helicopter accident. Below is a list of the other victims.

Iran and Russia Were Working on a New BRICS Currency

With President Ebrahim Raisi’s influence, the nation joined BRICS. According to the Iranian ambassador to Russia, both countries were collaborating on creating a single BRICS currency. 

Speaking at the “Russia – Islamic World: Kazan Forum 2024,” which took place in Kazan from May 14 to 19, the Iranian ambassador emphasized Iran and Russia’s cooperation to develop a single BRICS currency. 

The forum intends to strengthen trade, economic, scientific, technological, social, and cultural links between Russian regions and Organization of Islamic Cooperation (OIC) nations and foster the growth of Islamic financial institutions in Russia.

Also Read: Is BRICS Falling Apart Because of Its New Members?

Jalali noted Iran’s strong participation in the economic bloc’s operations under Russia’s chairmanship, which includes efforts to establish a common currency for the group. 

Doubts Surround the Unified BRICS Currency 

Iran has consistently supported the creation of a common BRICS currency. During a BRICS meeting in January, Iran expressed support for a unified currency, while Russia and China stressed the importance of settlements in local currencies.

 

In March, Yury Ushakov, a Kremlin adviser, advocated BRICS payments. He informed TASS that a proposed resolution entails adopting a blockchain-based payment system known as “BRICS Pay” instead of a traditional currency. 

We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics.

Yury Ushakov

The discussion of a common currency was once hot, but it has since lost momentum. The recent demise of Iran’s President Ebrahim Raisi adds fear to the strengthening of the BRICS economic block and the de-dollarization campaign that has since taken shape.

Some critics believe introducing a BRICS common currency could challenge the U.S. dollar’s current dominance. Robert Kiyosaki, the author of Rich Dad Poor Dad, recently expressed concern about the potential impact of the economic bloc’s digital currency launch on the stability of the U.S. dollar.


Cryptopolitan Reporting by Florence Muchai

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