XRP Becomes Alternative to US Dollar in India-UAE Oil Transactions

Bittime - The dominance of the US dollar in international trade is starting to erode. The partnership between India and the UAE in crude oil transactions has shown that there are more efficient and independent alternatives. Check out the use of XRP in India-UAE oil transactions in this article!

Historical Collaboration between India and UAE

In a historic move, India and the United Arab Emirates (UAE) have successfully completed crude oil transactions without involving US dollars. Both countries use their respective local currencies, but transactions are facilitated through the XRP Ledger system. 

This system even provides additional prizes in the form of CryptoTradingFund (CTF) tokens as cashback.

Read also: Tokenizing US T-Bills on the XRP Ledger: Everything You Need to Know

De-dollarization: A New Trend in the Global Economy

This step is part of de-dollarization efforts that are increasingly widespread among BRICS countries, including the UAE, which has just joined in 2024. 

The dominance of the US dollar in international trade has long been a concern for many countries, especially after the United States used its financial system as a tool for sanctions against several countries.

Ripple's Role in Driving De-dollarization

Ripple, the company behind XRP, has played an important role in driving the adoption of digital currencies for international transactions. The partnership with Dubai International Financial Center (DIFC) is a strategic step to expand XRP's influence in the Middle East region.

Brad Garlinghouse, CEO of Ripple, stated that the UAE is one of the leading countries in providing clear regulations for the virtual asset industry. Ripple is also committed to supporting the development of the XRP ecosystem by allocating one billion XRP for funding new projects.

The Future of De-dollarization

Although the use of XRP in oil transactions is a first step, it shows the huge potential of digital currencies in changing the global financial landscape. Many countries, including other BRICS members such as Brazil, have also expressed a desire to reduce dependence on the US dollar.

However, the journey towards de-dollarization is full of challenges. Differences in economic conditions between BRICS countries and the complexity of creating a new monetary system are some of the obstacles that need to be overcome.

Conclusion

Oil transactions between India and the UAE using XRP are an important step in efforts to reduce the dominance of the US dollar in international trade. 

Although there are still many challenges to overcome, this step opens up new opportunities for digital currencies to play a bigger role in the global economy.

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