Russia, as a prominent member of the BRICS alliance, recently unveiled plans for the development of a new blockchain-based payment system aimed at revolutionizing trade settlements among member nations. This initiative signals a strategic move to establish an independent mechanism for conducting transactions within the BRICS framework.
Kremlin aide Yury Ushakov highlighted the importance of creating a payment system that is not only convenient for governments, businesses, and the general population but also free of political influence and economically efficient. This aligns with the objectives outlined in the 2023 Johannesburg Declaration, which emphasize the need for increasing settlements in national currencies and diversifying correspondent banking networks to ensure the security of international transactions.
The BRICS alliance has been actively working towards de-dollarization, seeking alternatives to the U.S. dollar in international settlements. In addition to the new blockchain payment system, the group is developing the Contingent Reserve Arrangement using currencies other than the U.S. dollar. This concerted effort reflects a strategic shift towards a more diversified and resilient international monetary framework.
The decision to embrace blockchain technology for payments falls in line with global financial trends. Klaas Knot, Chair of the Financial Stability Board, has underscored the significance of crypto assets, tokenization, and artificial intelligence in maintaining global financial stability. The adoption of blockchain technology in payment systems aims to enhance the efficiency and accessibility of the worldwide monetary system, providing a secure and transparent platform for conducting transactions.
Russia’s announcement of a new blockchain-based payment system for BRICS represents a significant step towards modernizing trade settlements and reducing reliance on traditional financial mechanisms. By leveraging state-of-the-art tools such as digital technologies and blockchain, the BRICS alliance is poised to strengthen its position within the international monetary framework. As the global financial landscape continues to evolve, embracing blockchain innovation in payment systems is crucial to fostering a more resilient and efficient financial ecosystem.
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