March 7, 2024

BRICS Plans to Forge a Future Payment System Anchored in Digital Currencies and Blockchain Technology

BRICS, comprising Brazil, Russia, India, China, and South Africa, embarks on an innovative journey to reduce reliance on the US dollar in international settlements through the integration of digital currencies and blockchain technology.

In a strategic move towards financial sovereignty, the BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is set to pioneer a novel payment system leveraging cutting-edge blockchain technology and digital currencies. According to a report by the Russian news agency TASS, Kremlin aide Yury Ushakov emphasized the significance of establishing an autonomous BRICS payment infrastructure that prioritizes efficiency, accessibility, and neutrality.

Yury Ushakov stated in an interview with TASS:

"We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics."

This initiative aligns with BRICS's overarching mission to bolster its presence within the international monetary landscape. Over recent years, the alliance has diligently pursued strategies to mitigate its dependence on the US dollar, a phenomenon commonly referred to as de-dollarization.

Yury Ushakov also highlighted ongoing efforts to enhance the Contingent Reserve Arrangement, with a particular focus on diversifying currency usage away from the US dollar. This multifaceted approach underscores BRICS's commitment to fostering financial resilience and autonomy on a global scale.

In a recent development, reports from TASS revealed collaborative efforts between Russia's Finance Ministry, the Bank of Russia, and BRICS partners to establish the BRICS Bridge multisided payment platform. This initiative aims to streamline international transactions and fortify the integrity of the global monetary system.

Moreover, Klaas Knot, Chair of the Financial Stability Board, emphasized the continued relevance of crypto assets, tokenization, and artificial intelligence (AI) in the realm of global finance. His correspondence with finance ministers from the Group of 20 (G20) nations underscores the imperative for embracing innovation to navigate the evolving financial landscape effectively.

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