Ripple’s XRP is making headlines as it takes centre stage in a groundbreaking trade deal between India and the UAE. For the first time, India has completed a crude oil transaction with the UAE using local currencies, circumventing the US dollar. This historic deal is facilitated through the XRP Ledger System CryptoTradingFund (CTF), which rewards users with CTF tokens as cashback.
Earlier this week, Ripple cemented its presence in the UAE with a notable partnership announcement. The company revealed a new collaboration with the Dubai International Financial Centre (DIFC), aimed at accelerating blockchain and digital asset innovation in the region. This move aligns with the broader BRICS mission to reduce reliance on the US dollar.
India and the UAE have previously engaged in various agreements, but this deal marks a significant departure from traditional dollar-based transactions. It is the first transaction of its kind fully integrated with the XRP Ledger system. The partnership signifies a pivotal moment in the BRICS bloc’s ongoing efforts to de-dollarise global trade.
This development is more than just a strategic oil trade; it represents a shift towards a multi-currency world, where blockchain technology plays a crucial role. By moving away from the US dollar, the transaction not only paves the way for more efficient financial systems but also potentially reduces the costs associated with dollar-based transfers.
The BRICS summit, approaching soon, is likely to spotlight this innovative deal and the use of XRP Ledger in the UAE. As the bloc continues to explore various methods of de-dollarisation, this successful integration could inspire further moves towards local currency trades facilitated by blockchain technology.
This transaction marks a significant milestone in global trade dynamics, reflecting a broader trend within BRICS nations to seek alternatives to traditional dollar dominance.
