A Proposed Model for Monetary Stability in BRICS Countries via an Algorithmic Stablecoin and Blockchain-Based Multilateral Governance Framework

The BRICS nations (Brazil, Russia, India, China, South Africa) have expressed a growing interest in reducing reliance on the US dollar and strengthening monetary cooperation. This paper proposes a novel model: an algorithmic stablecoin backed by a basket of BRICS currencies and governed through a blockchain-based multilateral framework. The proposed stablecoin would algorithmically maintain a stable value relative to a composite BRICS currency index, with supply adjustments and partial reserves contributed by member states. Governance is entrusted to a decentralized autonomous organization (DAO) comprising the central banks of the BRICS, enforcing transparent rules and consensus-driven monetary policy. We integrate zero-knowledge proof (ZKP) techniques to preserve transaction privacy while ensuring regulatory compliance. The model is analyzed in context of existing stablecoins and digital currency initiatives – including Libra (Diem), TerraUSD, MakerDAO’s DAI, and central bank digital currencies – to highlight its design advantages and challenges. Our findings suggest that a BRICS stablecoin, if properly implemented, could enhance monetary stability through risk-sharing, improve cross-border payment efficiency, and bolster financial sovereignty of member nations, albeit with significant governance and technical hurdles to overcome.

کلیدواژه ها:

BRICS ، Algorithmic Stablecoin ، Monetary Stability ، Multilateral Governance ، Blockchain ، Central Bank Digital Currency (CBDC) ، Zero-Knowledge Proof (ZKP) ، Decentralized Autonomous Organization (DAO) ، Cross-border Payments ، Basket Currency