The BRICS nations, comprising Brazil, Russia, India, China, and South Africa, are taking a significant step toward creating an independent payment system that could challenge the dominance of the US dollar in international transactions. According to a report by the Russian news agency TASS, the group will leverage digital technologies and blockchain to establish a new payment platform.
Kremlin aide Yury Ushakov emphasized the importance of this initiative, stating, “We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.” The primary objective is to ensure convenience for governments, citizens, and businesses, while also ensuring cost-effectiveness and political neutrality.
This move is part of a broader effort by the BRICS nations to increase their role in the international monetary system and reduce their reliance on the US dollar for settlement purposes, a process known as “de-dollarization.” Ushakov further mentioned that work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies other than the US dollar.
Last week, TASS reported that Russia’s Finance Ministry, the Bank of Russia, and BRICS partners will create the BRICS Bridge multisided payment platform to improve the global monetary system. This initiative aligns with the priorities outlined by Klaas Knot, the Chair of the Financial Stability Board, who recently highlighted crypto assets, tokenization, and artificial intelligence (AI) as areas of focus for finance ministers from the Group of 20 (G20) countries.
The BRICS nations’ move to establish a blockchain-based payment system represents a significant challenge to the dominance of the US dollar in international transactions. By leveraging cutting-edge technologies like digital currencies and blockchain, the group aims to create a more diversified and decentralized financial ecosystem, potentially reshaping the global monetary landscape.
