Brazil is prioritizing blockchain technology to enhance BRICS cross-border trade during its presidency started in January. This marks a shift away from discussions about a common currency to focusing on improving transaction efficiency. Current trials involving stablecoins and existing systems like Brazil’s Pix highlight the group’s evolving financial strategies.
Brazil’s presidency of BRICS, which commenced in January, is placing significant emphasis on employing blockchain technology to enhance cross-border trade. This shift indicates a departure from former discussions regarding the establishment of a common currency among member nations, including Russia, India, and China. The Brazilian newspaper Valor Econômico states that improving efficiency in international transactions has become a primary objective.
The intention is not to establish a currency to rival the dollar, as U.S. tensions around trade currency have potential repercussions. Instead, the focus is on developing Brazil’s financial system with blockchain integration. The country’s central bank has been experimenting with Drex, an initiative aimed at building a tokenized financial transaction infrastructure, although it battles between privacy and regulatory challenges.
Moreover, the article mentions that a system akin to Brazil’s Pix could be another approach, albeit it raises sovereignty and governance concerns among nations. In addition, in April 2024, Russian deputy foreign minister Sergey Ryabkov indicated that stablecoins might facilitate international settlements within BRICS, with a special communication channel among central banks already created, although formal decisions on stablecoins remain unmade.
Furthermore, a report from March 2025 highlighted that Russian oil companies are utilizing various cryptocurrencies and stablecoins to convert Chinese yuan and Indian rupees into roubles for trade, showcasing existing trends towards alternative digital currencies in BRICS trade relations.
Brazil’s focus during its BRICS presidency on enhancing cross-border trade through blockchain technology represents a strategic shift from creating a common currency. The emphasis on efficiency in financial transactions, along with potential uses for stablecoins, indicates a progressive approach to international trade among BRICS members. This involvement of cryptocurrencies illustrates an ongoing evolution in the economic ties and financial systems within the bloc.
Original Source: crypto.news
