The BRICS countries which include, Brazil, Russia, India, China, and South Africa are set to meet for its annual summit in October where the developing countries may announce setting up a new currency to counter the United States dollar, Watcher Guru reported. 

BRICS is an intergovernmental organisation that was made to establish deeper ties between member nations and cooperate on economic expansions, such as trade. It was set to counterbalance Western alliances.

As per reports, the group is reportedly turning towards blockchain technology for its brand-new payment system.

The organisation aims to sway other countries to ditch the US dollar by uplifting local currencies for trade as well as developing a new currency system that would rival the US dollar.

In recent times, due to rising inflation as well as a hike in interest rates, people have been sceptical about investing in the dollar and have been moving towards other currencies. Despite this, the dollar still acts as the global reserve but a mounting US debt suggests that this may change.

Therefore, BRICS seeks to capitalise on this change in behaviour by announcing a new currency to further dampen the already weakening dollar.

In its annual meeting last year, the BRICS organisation had opened its doors by inviting multiple new nations, including, Egypt, Ethiopia, Saudi Arabia, the United Arab Emirates, and Iran to join its ranks.