Valentina Matvienko, Chairman of the Russian Federation Council, discussed the potential role of central bank digital currencies (CBDCs) in enhancing the use of national currencies within BRICS trade. Matvienko highlighted that a proposed BRICS payment system, referred to as the BRICS bridge, would incorporate the digital currencies of all member states.
At the X BRICS Parliamentary Forum in Saint Petersburg, Matvienko emphasized the increasing use of national currencies among BRICS countries—Brazil, Russia, India, China, and South Africa. She stated that Russia aims to further boost the efficiency, security, and usage of these transactions. This drive follows Western sanctions, which have significantly reduced the use of “toxic currencies” over the past year.
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The BRICS Bridge Concept
Matvienko explained that if the BRICS representatives successfully create a joint payment system, the BRICS bridge, it could facilitate decentralized trading transactions. She stressed that such a system would prevent any participant from restricting the actions of others. “In this case, digital currencies of the central banks of the association countries can be used, the rate of which will be tied to the value of national currencies,” she stated.
Legislative Coordination Needed
However, Matvienko acknowledged that implementing this vision would require coordinated legislative efforts to introduce and regulate the circulation of these digital currencies for cross-border payments within BRICS countries.
Previously, Nasser Kanani, spokesperson for the Ministry of Foreign Affairs of Iran, suggested linking all existing payment systems of BRICS nations. This would include Brazil, Russia, India, China, South Africa, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
