Brazil is proposing a blockchain-based payment system for the BRICS bloc to enhance cross-border transactions without challenging the U.S. dollar. The plan will be discussed at the upcoming BRICS summit and does not involve a common currency. While concerns regarding U.S. reactions exist, Brazil aims to navigate these challenges effectively while strengthening its cryptocurrency position.
Brazil is advancing a proposal for a blockchain-based payment system within the BRICS economic bloc. This initiative aims to enhance cross-border transactions and reduce costs while ensuring financial efficiency. As Brazil assumes the BRICS presidency, officials have clarified that this initiative is not intended to undermine the U.S. dollar’s dominance.
At the upcoming BRICS summit in July, to be held in Rio de Janeiro, Brazilian representatives will discuss this proposal. The envisioned system is designed to facilitate trade among member nations, which include China, Russia, India, and South Africa, by streamlining import-export processes and lowering transaction fees. However, details regarding the specific application of blockchain technology in this initiative remain undisclosed.
It is important to note that the proposed system does not involve the creation of a shared BRICS currency, a concept once supported by Dilma Rousseff of the BRICS New Development Bank. Additionally, Brazilian President Luiz Inácio Lula da Silva has distanced himself from prior suggestions advocating for an alternative to the U.S. dollar in international trade.
Concerns persist regarding potential reactions from the United States, especially in light of comments from a former U.S. president who threatened to impose tariffs on nations endorsing alternatives to the dollar. In response, Brazil aims to present its blockchain payment initiative in a manner that reduces the likelihood of economic retaliation from Washington.
As BRICS expands to incorporate countries like Saudi Arabia, Egypt, and the UAE, among others, the need for an efficient cross-border payment solution becomes more pressing. It remains uncertain if Brazil can navigate the accompanying economic and geopolitical challenges effectively.
Simultaneously, Brazil continues to bolster its presence in the global cryptocurrency landscape. Approximately 26 million Brazilian citizens, roughly 12% of the population, own cryptocurrencies, establishing Brazil as a leader in digital asset adoption and enhancing its influence in this domain.
In conclusion, Brazil is making significant strides toward establishing a blockchain-based payment system within the BRICS framework, aimed at facilitating international trade while maintaining the status of the U.S. dollar. The initiative, which excludes the concept of a unified BRICS currency, faces potential scrutiny from the United States. As BRICS expands, the demand for efficient payment systems is growing, further highlighting Brazil’s ambition in the cryptocurrency sector, represented by a substantial number of citizens engaged in digital assets.
Original Source: www.cointrust.com
