Russia Develops Blockchain-Based Payment System for BRICS
Russia, as a member of the BRICS alliance, has announced the development of a new blockchain-based payment system to revolutionize trade settlements among BRICS member nations. This initiative is part of the alliance’s strategy to increase its influence in the international monetary framework.
Plans for a Blockchain-Based Payment System
- The BRICS alliance, which includes Brazil, Russia, India, China, and South Africa, aims to collaborate on developing a payment system that utilizes blockchain technology and digital innovations.
- The goal is to create an independent payment system that is convenient for governments, businesses, and the general population while being free from political influence and economically efficient.
- Kremlin aide Yury Ushakov emphasized the importance of this initiative and stated that it would be based on state-of-the-art tools such as digital technologies and blockchain.
- This development aligns with the objectives outlined in the 2023 Johannesburg Declaration, which focuses on increasing settlements in national currencies and diversifying correspondent banking networks to ensure the security of international transactions.
- No specific timeline for the launch of the new BRICS blockchain payment system has been revealed.
BRICS’ Efforts Towards De-Dollarization
- In addition to developing a blockchain-based payment system, the BRICS group is actively working towards de-dollarization by seeking alternatives to the U.S. dollar in international settlements.
- The Contingent Reserve Arrangement, which uses currencies other than the U.S. dollar, is being developed as part of this effort.
- The move towards a blockchain-based payment system aligns with global financial trends highlighted by Klaas Knot, Chair of the Financial Stability Board, who emphasized crypto assets, tokenization, and artificial intelligence as top priorities for maintaining global financial stability.
- The Russian Finance Ministry, in collaboration with the Bank of Russia and other BRICS partners, is actively working on developing the “BRICS Bridge” multisided payment platform to enhance the effectiveness and accessibility of the worldwide monetary system.
Hot Take: BRICS Alliance Revolutionizes Trade Settlements with Blockchain-Based Payment System
Russia, as a member of the BRICS alliance, has taken a significant step towards revolutionizing trade settlements among BRICS member nations. By developing a blockchain-based payment system, the alliance aims to create an independent mechanism that will enhance convenience, eliminate political influence, and improve economic efficiency. This move aligns with global financial trends and the alliance’s efforts towards de-dollarization. The development of this payment system showcases the commitment of BRICS nations to strengthen their influence in the international monetary framework and ensure the security of international transactions. It will be interesting to see how this initiative progresses and its impact on trade settlements within the alliance.
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