Brazil Proposes Blockchain Payment System to Strengthen BRICS Cooperation
Brazil is proposing a blockchain payment system for the BRICS bloc to reduce reliance on the US dollar for cross-border transactions. This initiative could enhance transaction speed and cost-efficiency. Following the BRICS summit in July, the country aims to advocate for this system as a means to simplify settlements.
Brazil is currently formulating a proposal for a blockchain-based payment system intended for internal use within the BRICS economic bloc. This initiative aims to decrease dependence on the US dollar for cross-border transactions among its members, which include Brazil, Russia, India, China, and South Africa, with new members such as Egypt, Ethiopia, Iran, and the UAE having joined last year. Brazil officially took over the BRICS presidency on January 1, just ahead of hosting the annual summit in Rio de Janeiro in July.
The proposed blockchain payment system, as reported by O Globo, seeks to establish a secure, transparent, and enduring financial framework for BRICS nations, potentially expediting transaction processing and reducing costs significantly. However, it remains uncertain whether the system will incorporate a new crypto token for settlements or utilize existing stablecoins and Central Bank Digital Currencies (CBDCs).
The idea of a blockchain payment system was initially proposed by Russia last March, prompted by various external challenges, including US monetary policy and sanctions affecting Russia and China. Yury Ushakov, an advisor to President Putin, remarked that such a system could diminish the impact of US financial policies and facilitate easier cross-border transactions among BRICS members.
Former US President Donald Trump publicly criticized the BRICS bloc for diminishing the US dollar’s dominance and threatened to escalate tariffs by 100 percent against BRICS countries. In response, Brazil aims to advocate for the blockchain payment platform as a means to streamline cross-border settlements, rather than presenting it as a direct challenge to any existing currency.
Additionally, the BRICS group is expanding. As of January 1, new partner nations, including Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan, and Nigeria have joined. Approximately 30 more countries have expressed interest in joining the bloc, indicating its growing influence.
In summary, Brazil is actively pursuing a blockchain-based payment system for the BRICS bloc, aiming to enhance transaction efficiency and reduce dependency on the US dollar. The proposal, which reflects collaborative efforts among member nations, signifies a potential shift in global economic dynamics. With ongoing expansion of the BRICS group, the implications of this initiative could resonate widely on international financial systems.
Original Source: www.gadgets360.com
