Brazil is proposing a blockchain-based payment system for BRICS to reduce reliance on the US dollar, as discussed at upcoming summits. This initiative aims to create a secure financial infrastructure among member nations, potentially changing the landscape of cross-border transactions.
Brazil is exploring the establishment of a blockchain-based payment system for internal transactions within the BRICS economic bloc, consisting of Brazil, Russia, India, China, and South Africa. The proposal aims to reduce dependency on the US dollar for cross-border transactions, discussions of which began in 2024. Brazil recently assumed the BRICS Presidency and will host the annual summit in Rio de Janeiro in July, where blockchain payments will be a key topic.
The proposed system aims to create a secure, transparent, and permanent financial infrastructure for BRICS countries, potentially shortening transaction processing times and reducing costs. However, it remains uncertain whether a new cryptocurrency token will be introduced for this purpose, or if existing stablecoins and Central Bank Digital Currencies (CBDCs) will be utilized.
The initiative was suggested by Russia in March, as consecutive US interest rate hikes and economic sanctions prompted BRICS nations to seek alternatives to the US dollar for internal settlements. Yury Ushakov, an advisor to President Putin, stated that this system would minimize US financial influence and streamline transactions among BRICS members.
Emphasizing the economic implications, US President Donald Trump has criticized BRICS for undermining the US dollar, stating that he would increase tariffs by 100 percent against these nations. Brazil’s approach towards the blockchain platform seeks to frame it as a means to simplify cross-border settlements, avoiding direct confrontation with the US.
The BRICS group is expanding, having recently welcomed several new partner nations, including Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan, and Nigeria. Approximately 30 other countries have also expressed interest in joining the bloc, indicating its growing significance in the global economy.
In summary, Brazil’s proposal for a blockchain payment system within the BRICS bloc is a significant step towards reducing reliance on the US dollar for intra-group transactions. By hosting upcoming discussions at the BRICS summit, Brazil aims to present the initiative as a facilitator for cross-border settlements. The group’s expansion and adaptability in response to global economic pressures further demonstrate its evolving role on the international stage.
Original Source: www.gadgets360.com
