BRICS member Russia announced the creation of a new blockchain-based payment system on Tuesday. The blockchain and cryptocurrency-based payment mechanism will be an independent system for trade settlements. The new BRICS payment system will position itself as an alternative option to the US dollar.

The payment system aims to be friendly to governments, businesses, and even common citizens. Therefore, if the system becomes a success, a variety of hierarchies from governments to the average man could benefit immensely.

Russian diplomat Yuri Ushakov confirmed that the new BRICS payment mechanism will boast state-of-the-art technology that will incorporate digital assets and cryptocurrencies on the blockchain.

BRICS could take on the US dollar with the payment system allowing member nations and other developing countries to settle cross-border transactions in the new mechanism. The development will add pressure on the US dollar making its supply and demand dip in the global market. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

BRICS: New Payment System Based on Blockchain

Ushakov stressed that the specific task for BRICS this year is to enhance its global presence in the financial system. The payment system will be the first step in pushing the alliance on a new track of global dominance.

Also Read: BRICS Prepares to Launch Currency in 2024

“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,” he said to Tass.

However, Ushakov did not reveal a tentative timeline for the launch of the new BRICS payment system. It’s most likely that the new mechanism will be brought to light at the 16th summit in October this year.