Breaking: BRICS Plans Digital Currencies and Blockchain Based Payment System for De-Dollarization

BRICS plans to leverage digital currencies and blockchain to create a payment system amid de-dollarization drive.
By Varinder Singh
BRICS vs SWIFT

Highlights

  • BRICS announces creation of independent payment system based on digital currencies and blockchain.
  • Russia's Kremlin aide Yury Ushakov revealed further work on BRICS Contingent Reserve Arrangement (CRA) framework
  • The move comes amid efforts to use currencies different from the US dollar, increasing de-dollarization

BRICS, an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, announces the creation of an independent payment system based on digital currencies and blockchain.

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BRICS Digital Currencies and Blockchain-Based Payment System

Russia’s Kremlin aide Yury Ushakov in an interview with Russian News Agency TASS revealed work to create an independent payment system based on digital currencies and blockchain. It is part of the BRICS Contingent Reserve Arrangement (CRA) framework to protect against global liquidity pressures including adverse affect of global financial pressures.

It is a big announcement by the BRICS nations as they primarily push for the use of currencies different from the US dollar. The de-dollarization effort has gained significantly amid the recent inflation and economic slowdown.

“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 main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” Yury Ushakov said.

He added that the nations will work to improve the role of BRICS in the international monetary and financial system. The BRICS CRA is generally seen as a competitor to the International Monetary Fund (IMF).

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BRICS on Breaking Dollar Dominance

Recent reports revealed cooperation between the Russian Finance Ministry, the Bank of Russia, and BRICS nations to prepare a number of initiatives to improve the international monetary and financial system. This includes the creation of the BRICS Bridge multisided payment platform.

BRICS welcomed Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) to join the de-dollarization drive while improving the international monetary and financial system.

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Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
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