BRICS Countries to Establish a Payment System Based on Digital Currencies and Blockchain!

For some time, BRICS countries have been trying to reduce the use of the US dollar in their regions.

• The group will create a blockchain-based payment system as part of a special task set for this year to increase the role of BRICS in the international money system.

According to a report by Russian news agency TASS, the BRICS group of five countries, Brazil, Russia, India, China, and South Africa, will begin work on developing a payment system based on blockchain and digital technologies.

Kremlin advisor Yury Ushakov emphasized the importance of creating an independent BRICS payment system in an interview with TASS, saying, “As BRICS countries, we believe that it is a significant future goal to create an independent BRICS payment system using the latest technologies such as digital technologies and blockchain. It is important to ensure that this system is easy to use, cost-effective, and independent of politics for governments, people, and businesses”

This initiative is part of a special task set for this year to increase the role of BRICS in the international money system. The group has long been trying to reduce its dependency on the US dollar in settlements, a strategy also known as de-dollarization.

Ushakov also noted that work on developing the Contingent Reserve Agreement, particularly focusing on the use of currencies other than the US dollar, continues.

Last week, according to a TASS report, the Russian Ministry of Finance, the Central Bank of Russia and BRICS partners announced that they will be creating the Bridge multi-payment platform to improve the global money system.

Additionally, in February, Klaas Knot, the President of the Financial Stability Board, which monitors the global financial system, still pointed out topics such as crypto assets, tokenization, and artificial intelligence (AI) as priorities to the finance ministers of the G20 countries.