BRICS Plans for Independent Cryptocurrency Payment System

New BRICS plans have been anounced to establish an independent payment system utilizing cryptocurrencies and blockchain technology. The declaration came from Kremlin aide Yury Ushakov during an interview with TASS.

According to Ushakov, the primary objective is to develop a technologically advanced Independent Cryptocurrency Payment System devoid of political interference:

“We believe that creating an independent BRICS payment system is a crucial future goal, leveraging modern technologies like digital currencies and blockchain. Ensuring convenience for governments, individuals, and businesses, while maintaining economic viability and political neutrality, is paramount,” he stated.

Understanding BRICS plans and Its Economic Objectives

BRICS represents a coalition of emerging economies committed to fostering economic collaboration and collective development. This partnership comprises five prominent nations: Brazil, Russia, India, China, and South Africa.

Ushakov highlighted the 2023 Johannesburg Declaration, which emphasized the BRICS countries’ commitment to augmenting transactions in national currencies and fortifying correspondent banking networks to facilitate international trade.

The Kremlin advisor underscored ongoing efforts to enhance the Contingent Reserve Arrangement, particularly regarding the diversification of currencies beyond the US dollar.

Since 2019, BRICS has been deliberating the potential utilization of cryptocurrencies to streamline trade and mitigate reliance on the US dollar. Early discussions, as reported by CryptoDeFinance, centered around development of a cryptocurrency tailored for intra-bloc trade.

Challenges and Renewed Momentum

While the idea was initially mooted during a meeting of the BRICS business council in Brazil, progress stalled. However, with concerns escalating over the stability of the US dollar, the initiative regained prominence last year.

Now, amidst renewed momentum, BRICS appears poised to forge ahead with the creation of its own cryptocurrency and blockchain payment system, potentially reshaping global trade dynamics.