BRICs, a group consisting of Brazil, Russia, India, China, and South Africa, has announced its plans to create a blockchain-based cryptocurrency payments system. The goal of this system is to increase the role of BRICs in the international monetary system and reduce reliance on the US dollar. This move is also aimed at fostering deeper ties among member nations, enhancing economic cooperation, and countering the political and financial dominance of developed Western nations. The BRICs payment system is expected to benefit governments, businesses, and common citizens by providing a convenient and cost-effective platform for international transactions.
Yuri Ushakov, a Kremlin Aide, emphasized the importance of creating an independent BRICs payment system that leverages state-of-the-art tools such as blockchain and digital technologies. The system is intended to be convenient for governments, businesses, and regular citizens, and it should also be free from political influence. BRICs aims to develop a government-friendly and business-friendly payment system that will have a significant impact on various institutions and stakeholders.
The blockchain-based payment system will enable BRICs to challenge the dominance of the US dollar and facilitate cross-border transactions for member nations and other developing countries. By incorporating digital assets and cryptocurrencies, the system will add pressure on the US dollar and potentially affect its supply and demand in the global market. However, specific details about the system, including whether it will use an existing platform or develop its own blockchain, have not been disclosed yet. Additionally, there is no timeline provided for the launch of the new BRICs payment system.
The creation of a blockchain-based payment system aligns with the BRICs Contingent Reserve Arrangement (CRA) established in 2014. The CRA framework provides liquidity and support to facilitate the balance of payments between member nations. Member countries have committed a total of $100 billion to the CRA, with contributions ranging from $41 billion by China to $5 billion by South Africa. The goal of the CRA is to reduce dependence on US dollar-denominated assets and arrangements while strengthening the global financial safety net. BRICs will continue to develop the CRA and explore the use of currencies other than the US dollar.
Overall, the creation of a blockchain-based payment system by BRICs is a significant step towards increasing the influence of emerging economies and reducing reliance on the US dollar. The system will leverage state-of-the-art tools like blockchain and digital technologies to provide a convenient and cost-effective platform for international transactions. This move has the potential to challenge the dominant position of the US dollar and foster economic cooperation among member nations.
In conclusion, BRICs plans to create a blockchain-based payment system to strengthen its role in the global monetary system, reduce reliance on the US dollar, and foster economic cooperation among member nations. The system aims to be convenient for governments, businesses, and regular citizens while incorporating digital assets and cryptocurrencies. By challenging the dominance of the US dollar, it will have an impact on the global market. The specific details of the payment system and its launch timeline have yet to be disclosed. This move aligns with the BRICs Contingent Reserve Arrangement and aims to reduce dependence on the US dollar-denominated assets and arrangements. The creation of the blockchain-based payment system is a significant step towards increasing the influence of emerging economies and fostering economic cooperation among member nations.
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