BRICS Embarks on Blockchain Payment System Initiative

The BRICS grouping, comprised of Brazil, Russia, India, China, and South Africa, is set to embark on a groundbreaking initiative to create a payment system based on blockchain technology. This endeavor underscores a specific task for the year aimed at bolstering the role of BRICS in the international monetary system.

According to a report by Russian news agency TASS, Kremlin aide Yury Ushakov emphasized the importance of establishing an independent BRICS payment system. He highlighted the need for leveraging state-of-the-art tools such as digital technologies and blockchain to ensure convenience for governments, businesses, and individuals, while also prioritizing cost-effectiveness and depoliticization.

The move towards a blockchain-based payment system aligns with ongoing efforts within BRICS to reduce reliance on the US dollar in settlement transactions, a strategy commonly referred to as de-dollarization. Ushakov reiterated the group’s commitment to this objective, emphasizing the continuous development of the Contingent Reserve Arrangement, with a focus on diversifying currency usage beyond the US dollar.

In a separate report by TASS, it was revealed that Russia’s Finance Ministry, in collaboration with the Bank of Russia and BRICS partners, will establish the BRICS Bridge multisided payment platform. This initiative aims to enhance the global monetary system by fostering greater connectivity and efficiency in cross-border transactions.

The BRICS countries’ foray into blockchain-based payment systems comes amidst growing recognition of the potential of digital technologies to reshape the financial landscape. In a letter addressed to finance ministers from the Group of 20 (G20) nations, Klaas Knot, Chair of the Financial Stability Board, highlighted the importance of prioritizing crypto assets, tokenization, and artificial intelligence (AI) in global financial discussions.

The decision to explore blockchain-based payment systems underscores BRICS’ commitment to innovation and financial inclusivity. By harnessing the transformative power of blockchain technology, the group aims to forge a path towards a more resilient and efficient international monetary system.

As the global financial landscape continues to evolve, initiatives such as the BRICS blockchain payment system serve as a testament to the potential of collaborative efforts in driving innovation and fostering financial stability. With blockchain at the forefront of this transformation, BRICS nations are poised to play a pivotal role in shaping the future of finance on a global scale.

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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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