Brazil’s BRICS Presidency Enhances Cross-Border Trade with Blockchain Focus
Brazil is emphasizing blockchain to enhance cross-border trade during its BRICS presidency, pivoting from discussions about a common currency. The integration aims to improve transaction efficiency, with initiatives like the Drex project and potential stablecoin use on the horizon. Current adaptations suggest ongoing developments in cryptocurrency applications among BRICS members.
Brazil is prioritizing the integration of blockchain technology to enhance cross-border trade during its presidency of BRICS, which began in January. This initiative marks a significant shift from previous discussions centered on establishing a common currency among member nations, including Russia, India, and China, as reported by Valor Econômico. The new focus aims to improve the efficiency of international transactions rather than compete with the U.S. dollar.
The Brazilian government is exploring the possibility of incorporating blockchain into its financial system to streamline trade processes. Currently, the Central Bank of Brazil has been testing a project named Drex, designed to create a tokenized infrastructure for financial transactions. However, this initiative faces challenges regarding the balance between maintaining user privacy and adhering to regulatory requirements.
An alternative solution proposed involves creating a network akin to Brazil’s Pix system. However, this approach raises questions concerning the governance and sovereignty of the participating BRICS nations. Meanwhile, in April 2024, Sergey Ryabkov, the Russian Deputy Minister of Foreign Affairs, hinted at the potential use of stablecoins for international settlements, though no formal agreement has been established as of now.
Additionally, reports from March 2025 indicate that Russian oil companies are already utilizing various cryptocurrencies and stablecoins to facilitate trade by converting Chinese yuan and Indian rupees into roubles. This development signifies the ongoing adaptation of blockchain technologies and cryptocurrencies within the BRICS economic framework.
In conclusion, Brazil’s BRICS presidency is shifting focus towards the utilization of blockchain technology to enhance trade efficiency among member countries, moving away from the previous ambition of establishing a common currency. The emphasis lies on integrating blockchain into financial systems while navigating regulatory challenges and privacy concerns. This trajectory remains dynamic, with the potential for stablecoins playing a role in future international settlements, illustrating the evolving landscape of cross-border trade within BRICS.
Original Source: crypto.news
