Brazil is proposing a blockchain payment system for BRICS to reduce reliance on the US dollar. This plan seeks to enhance cross-border transactions among BRICS nations, which includes Brazil, Russia, India, China, South Africa, and newer partner countries. The project aims to streamline payments while possibly introducing new digital currencies or utilizing existing ones.
Brazil is working on a proposal to establish a blockchain payment system for the BRICS economic bloc, which includes Brazil, Russia, India, China, and South Africa. This initiative aims to enhance internal cross-border transactions and decrease reliance on the US dollar, a topic the group has been deliberating since 2024. Brazil assumed the BRICS presidency on January 1 and will host the annual summit in Rio de Janeiro in early July, where blockchain payment discussions will be featured.
The proposed blockchain system intends to provide a secure, transparent, and permanent financial infrastructure tailored for BRICS transactions, potentially reducing costs and transaction times. There is ongoing uncertainty about whether a new crypto token or existing stablecoins and central bank digital currencies (CBDCs) will be employed for processing settlements under this system.
The concept was previously suggested by Russia in March to diminish the US dollar’s dominance in internal settlements, driven by economic sanctions and interest rate increases following the COVID-19 pandemic. Yury Ushakov, an advisor to President Putin, indicated that this system could mitigate US influence in financial matters and streamline transactions among BRICS nations.
US President Donald Trump has criticized the BRICS bloc for its efforts to diminish the US dollar’s prevalence, threatening a substantial increase in tariffs against its members. Brazil aims to present its blockchain initiative as a means to simplify cross-border settlements, rather than as an intention to displace any currency, doing so without provoking US opposition.
The BRICS bloc is expanding, having recently added several partner nations including Belarus, Kazakhstan, and Nigeria on January 1. Approximately 30 additional countries have expressed interest in joining the group as it grows further.
Brazil is taking a significant step in proposing a blockchain-based payment system for BRICS, aiming to enhance transaction efficiency and decrease dependency on the US dollar. This initiative, rooted in a desire for less dollar dominance, reflects broader geopolitical shifts. As the group continues to expand with new partners, the blockchain proposal could redefine trade dynamics within BRICS and globally.
Original Source: www.gadgets360.com
