In a groundbreaking announcement at the BRICS Business Forum in Moscow, Russian President Vladimir Putin revealed that the BRICS bloc has officially adopted cryptocurrencies for investments. This bold move, announced on October 18, marks a significant shift in the economic policies of the alliance comprising Brazil, Russia, India, China, and South Africa. The decision comes just ahead of the BRICS Summit 2024, where further economic policies are expected to be unveiled, including the launch of the blockchain-based BRICS Pay platform.
Putin emphasized the potential of digital currencies to benefit both BRICS nations and other emerging economies. The bloc plans to develop a regulatory toolkit under the supervision of BRICS institutions to ensure proper governance of these digital assets. This adoption aligns with BRICS’ ongoing efforts to reduce dependence on the US dollar in international trade and promote the use of local currencies. The move follows Russia’s recent reversal of its ban on digital assets for international payments, setting the stage for this new direction.
The BRICS Pay platform, introduced at the forum, is poised to play a crucial role in facilitating cross-border transactions within the alliance. This blockchain-based system is viewed as a key tool for reducing reliance on Western financial systems, with Russia and China particularly advocating for its adoption to bypass US sanctions. Putin also highlighted that BRICS members have already made progress on a SWIFT-like financial messaging system and have been using national digital currencies to finance high-growth projects.
Looking ahead, Putin expressed confidence in BRICS’ ability to drive global economic growth, citing the bloc’s large and rapidly expanding economies. He welcomed new members to the alliance and mentioned ongoing expansion efforts. Russia’s contributions to BRICS include new financial initiatives such as a joint cross-border payments system and the creation of a reinsurance company. Additionally, Putin called on the New Development Bank to invest in key areas like technology, infrastructure, e-commerce, and artificial intelligence, particularly in the Global South. With Russia’s recent legalization of crypto mining and international crypto payments, along with the ongoing development of the digital ruble, the stage is set for a new era of digital currency integration within the BRICS alliance.
