The BRICS alliance comprising Brazil, Russia, India, China, and South Africa is taking a major step towards reducing their reliance on the U.S. dollar and increasing their influence in the global financial system. The alliance announced plans to collaborate on developing a blockchain-based payment system to facilitate trade settlements among its member countries.
According to Kremlin aide Yury Ushakov, this payment system will leverage cutting-edge technologies like blockchain and digital innovations to create an independent mechanism for international transactions within the BRICS alliance. A key goal is to have a system that is convenient, free from political pressures, and economically efficient for governments, businesses and individuals.
Beyond just the payment system, the BRICS group has been actively pursuing de-dollarization by seeking alternatives to the U.S. dollar in broader international settlements. They are working on developing the Contingent Reserve Arrangement which focuses on using currencies other than the U.S. dollar. As Ushakov stated, “Work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies different from the US dollar.”
This blockchain payment system initiative aligns with growing global trends around digital assets and fintech innovation. The chair of the Financial Stability Board recently highlighted that crypto assets, tokenization and AI are top priorities for maintaining financial stability worldwide. The Russian Finance Ministry and its BRICS partners are also developing a complementary “BRICS Bridge” platform to enhance cross-border transaction efficiency and accessibility. Through these multilateral efforts, the BRICS alliance is aiming to chart an independent course in redesigning international monetary systems and flows.
