BRICS group collaborates on independent payment system using blockchain and digital currency

The BRICS group of countries (Brazil, Russia, India, China, and South Africa) is collaborating on the creation of an independent payment system using blockchain and digital technologies, according to a report by Russian news agency TASS. The objective is to develop a secure, efficient, and blockchain based payment system that is convenient for governments, ordinary people, and businesses. It should also be cost-effective and free from political influence. This initiative is part of the BRICS group’s efforts to enhance its role in the international monetary system and reduce reliance on the US dollar.

Kremlin aide Yury Ushakov stated in an interview with TASS that an independent payment system is an important future goal. By developing their own payment system, BRICS countries aim to enhance their financial sovereignty and reduce vulnerabilities associated with relying on existing global payment systems.

The report also highlighted the BRICS group’s ongoing efforts to reduce reliance on the US dollar, a concept known as de-dollarization. The development of the Contingent Reserve Arrangement will play a crucial role in this aspect as it will enable the use of currencies other than the US dollar. This diversification aims to provide BRICS countries with more stability and flexibility in their financial transactions and reduce exposure to potential economic risks associated with a single dominant currency.

The endorsement of crypto assets, tokenization, and AI underscores the importance of embracing technological advancements in the future of finance.