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Will BRICS use cryptocurrencies for their payment system?
With the economic alliance developing its own native financial structure, could the BRICS bloc be ready to use cryptocurrency for its payment system? A Russian Senate leader recently discussed the potential of digital currencies as a vital part of the alliance system at a BRICS Forum in St. Petersburg. In particular, Central Bank Digital Currencies (CBDCs).
Earlier this month, Iran called for a payment system to connect all central banks of BRICS members. Cryptocurrencies could be a rather simple way to do this. According to the Chairwoman of the Federation Council of Russia, Valentina Matvienko, this could be a key part of the developing project.
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Digital currencies could play a role in the BRICS payment system
In March, it was announced that the BRICS bloc was working on creating your own payment system. The move sent shockwaves through the geopolitical realm, especially for its implications for global finance. Now, the digitization of that payment system has caught the attention of many.
The BRICS bloc may be ready to use cryptocurrency for its payment system, according to a Russian official. Indeed, Matvienko said the push for a payment system was linked to the bloc’s hopes for de-dollarization. In particular, its decision to get rid of “toxic currencies,” weaponized by the West.
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Matvienko noted that decentralized trading was a focus for the payment platform. He said, “None of the participants will be able to limit the actions of others,” through the project. He is also ensuring its freedom from actions such as US sanctions issued in recent years.
“In this case, the digital currencies of the central banks of the associated countries can be used,” he said. “The rate of which will be tied to the value of national currencies,” he added. The move would be interesting for the group. It would provide a fundamental way to use national currencies in unilateral trades. It would also continue to de-dollarize the digital asset class.
The payment system is one of several projects that will de-dollarize the economy. Rumors suggest that the bloc is also working on a currency exchange platformFurthermore, they discussed their parliamentarianEveryone is working to increase the influence of the Global South.