Brazil proposes a blockchain payment system for the BRICS economic bloc to improve cross-border transactions and reduce costs, without challenging the U.S. dollar. The plan excludes a common BRICS currency. The proposal will be discussed at the upcoming July summit in Rio de Janeiro, amid growing demand for efficient payment solutions as BRICS membership expands, while Brazil’s cryptocurrency adoption continues to rise.
Brazil is advancing with a proposal to implement a blockchain-based payment system for the BRICS economic bloc, aimed at simplifying cross-border transactions and reducing costs. As Brazil takes on the BRICS presidency, officials have clarified that the initiative does not intend to disrupt the U.S. dollar’s current dominance.
The proposal will be discussed at the upcoming BRICS summit in July, slated to occur in Rio de Janeiro. The anticipated system seeks to facilitate trade among member nations, including China, Russia, India, and South Africa, by streamlining import-export contracts and reducing transaction expenses. However, detailed applications of blockchain technology in this proposal have yet to be revealed.
Notably, the initiative excludes the creation of a common BRICS currency, a previously supported idea by Dilma Rousseff, the head of the BRICS New Development Bank. Furthermore, Brazilian President Luiz Inácio Lula da Silva has shifted away from earlier notions suggesting an alternative to the U.S. dollar in international commerce.
Despite the clarifications, there are concerns regarding potential U.S. responses. A former U.S. president has floated the idea of imposing significant tariffs on nations endorsing alternatives to the dollar. In light of this, Brazil plans to present the blockchain payment system in a way that reduces the risk of economic retaliation from the United States.
As BRICS expands to include nations such as Saudi Arabia, Egypt, the UAE, Ethiopia, Iran, and Indonesia, the need for a more efficient cross-border payment system has grown. Brazil’s ability to navigate these economic and geopolitical complexities remains uncertain. Furthermore, Brazil has solidified its role in the global cryptocurrency landscape, with around 26 million citizens—12% of the population—holding cryptocurrencies, reinforcing the country’s influence in the digital asset space.
Brazil’s blockchain payment system proposal for BRICS aims to enhance cross-border transaction efficiency without challenging the U.S. dollar’s supremacy. The absence of a common currency and strategic presentation of the proposal reflects Brazil’s cautious approach to potential U.S. backlash. As BRICS membership expands and Brazil leads in cryptocurrency adoption, the effectiveness of this initiative and its geopolitical implications remain to be seen.
Original Source: www.cointrust.com
