Potential of stablecoins in the BRICS countries with a focus on China

This article investigates the potential of stablecoins within both the global financial system and the BRICS nations. The analysis reveals that stablecoins are emerging as a pivotal mechanism in the modern economy, bridging the cryptocurrency realm with traditional finance and ensuring stability within the crypto sphere. Stablecoins demonstrate both advantages and disadvantages. A global trend has been identified towards developing initiatives for the creation and implementation of national stablecoins. The study establishes that these digital financial assets play a dual role: on one hand, they possess significant potential as a catalyst for innovation, while on the other hand, they provoke substantial macroeconomic risks. The authors paid particular attention to stablecoin collateral models and global implementation practices. The Chinese initiative to develop a yuan-backed stablecoin to strengthen the national currency’s position in the global financial system is examined. Scenario-based forecasts for the utilization of this new form of Chinese monetary unit within BRICS countries were developed. It is concluded that coordinated actions by national regulators are necessary to establish clear rules for the stablecoin market.