To enable smoother and more cost-effective transactions around the world, BRICS countries want to build an independent blockchain-based payment system that incorporates digital currencies.
In an interview with Russia’s TASS news agency, Kremlin advisor Yuri Ushakov stressed the coalition’s goal of increasing financial independence from the U.S. dollar through cutting-edge digital and blockchain technologies.
Blockchain-based payment system
Ushakov said: “We believe that creating an independent BRICS payment system is an important goal for the future.” “The most important thing is that it should be convenient for governments, ordinary people and businesses, as well as cost-effective and free from politics .”
Ushakov stressed that a key goal for this year is to increase the BRICS’ influence on the global financial and monetary system. In the 2023 Johannesburg Declaration, BRICS leaders agreed on the importance of greater use of national currencies in settlements.
The 2023 Johannesburg Declaration detailed that “We recognize the widespread benefits of fast, affordable, transparent, secure and inclusive payment systems.” It underscored the BRICS countries’ commitment to improving cross-border payments by drawing up the G20 Action Plan on Cross-Border Payments.
The agreement also emphasized the sharing of BRICS members’ experiences and practices in payment infrastructures. “Encouraging the use of local currencies in international trade and financial transactions between the BRICS, as well as their trading partners.”
BRICS will reduce dependence on the USD
According to Ushakov’s claims, the goal of the payment system is to reduce the BRICS countries’ dependence on the US dollar.
The Russian deputy president said: “Work will continue on the development of the Contingent Reserve Arrangement, primarily with regard to the use of currencies other than the US dollar.”
The founding countries of the group known as BRICS were Brazil, Russia, India and China Later South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates joined the group.
Some sources, such as Bloomberg and the BBC, confirmed that Saudi Arab ia had also accepted the invitation, but a Reuters report said the country was still considering an invitation.
