The BRICS group, comprising Brazil, Russia, India, China, and South Africa, plans to revolutionize the global financial system by creating a blockchain-based payment system. Russia’s move towards reducing dependency on the U.S. dollar for settlements is known as de-dollarization.
Kremlin aide Yury Ushakov, in an interview with TASS, outlined the ambition behind this groundbreaking project. “Creating an independent BRICS payment system is an essential goal for the future, one that relies on modern tools like digital technologies and blockchain. The focus is on ensuring convenience and cost-effectiveness for governments, the general populace, and businesses while keeping the system apolitical,” Ushakov stated.
BRICS’ Broader Strategy
This development is part of a broader strategy to amplify BRICS’ influence within the international monetary framework. The effort to move away from the U.S. dollar has been a consistent theme, with the group working on the Contingent Reserve Arrangement to diversify the currencies used in international transactions away from the dollar.
A recent TASS report highlighted that the Russian Finance Ministry, the Bank of Russia, and other BRICS partners are working on creating the “BRICS Bridge” multisided payment platform. This initiative aims to improve the effectiveness and accessibility of the worldwide monetary system.
Global Financial Stability Focus
The move towards a blockchain-based payment system aligns with the broader financial trends noted by Klaas Knot, Chair of the Financial Stability Board. In a letter to the G20 finance ministers, Knot emphasized that crypto assets, tokenization, and artificial intelligence (AI) are among the top priorities for global financial stability.
