The BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, have announced their intention to create an independent payment system based on crypto and blockchain technology.

According to Kremlin aide Yury Ushakov, the primary goal of this initiative is to provide a convenient, cost-effective, and politically neutral platform for governments, businesses, and individuals within the BRICS countries.

The decision to develop this innovative payment system comes as part of the BRICS nations’ broader strategy to increase their role in the international monetary and financial system.

Key points:

• BRICS announces plans to develop a payment system utilizing digital currencies and blockchain technology.
• The system aims to be convenient, cost-effective, and politically neutral.
• The initiative is part of the BRICS nations’ strategy to increase their role in the international monetary system.
• The payment system is designed to reduce reliance on the US dollar (de-dollarization).

As outlined in the 2023 Johannesburg Declaration, the BRICS leaders have emphasized the importance of settling transactions in national currencies and strengthening correspondent banking networks to facilitate secure international transactions.

Ushakov highlights benefits of the proposed payment system

Ushakov, in an interview with the Russian news agency TASS, highlighted the potential benefits of the proposed payment system. Additionally, he stated that it 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,” Ushakov said.

The development of the BRICS crypto powered payment system is part of a larger effort by the member nations to reduce their reliance on the US dollar. In addition to achieving this goal, the BRICS countries will continue to work on the Contingent Reserve Arrangement. This arrangement focuses on the use of currencies other than the US dollar.

The development of this payment system is expected to have far-reaching implications for the global economy. Furthermore, this could challenge the dominance of the US dollar and provide an alternative for countries seeking to diversify their financial options.