Brazil is proposing a blockchain payment system for the BRICS bloc to reduce reliance on the US dollar, currently under discussion among member countries. The system aims to provide secure and cost-effective transactions. Amid geopolitical tension, Brazil’s initiative will be introduced as a means to simplify settlements. The bloc, which recently expanded, continues to attract interest from additional nations.
Brazil is reportedly planning to propose a blockchain-based payment system for use by the BRICS economic bloc, aimed at reducing dependency on the US dollar for internal transactions. This initiative follows discussions among Brazil, Russia, India, China, South Africa, and new members Egypt, Ethiopia, Iran, and the UAE since 2024. Brazil currently holds the BRICS Presidency and will host the upcoming annual summit in Rio de Janeiro in July, where the topic of blockchain payments will be a key focus.
The proposed blockchain system aims to establish a secure, transparent financial infrastructure for BRICS member nations, potentially reducing transaction processing times and costs. While details on whether a new cryptocurrency token will be introduced or existing digital currencies will be utilized remain unclear, the BRICS group is keen to explore options that enhance financial cooperation.
The idea of this payment system was initially proposed by Russia to reduce the reliance on the US dollar, particularly in light of increased US interest rates and sanctions affecting Russia and China. Yury Ushakov, an advisor to President Putin, noted that implementing the system could alleviate US-driven financial pressures and facilitate easier cross-border transactions among BRICS members.
US President Donald Trump has publicly criticized the BRICS bloc for its efforts to undermine the dollar’s dominance, threatening to raise tariffs substantially against BRICS nations. In response, Brazil is keen to present this blockchain initiative as a method to streamline cross-border settlements rather than as a challenge to US currency.
The BRICS coalition is also expanding, having welcomed several partner nations including Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan, and Nigeria. Around 30 other countries have expressed interest in joining, indicating the bloc’s growing influence on the global stage.
In summary, Brazil’s proposal for a blockchain-based payment system within the BRICS economic bloc aims to reduce reliance on the US dollar while fostering easier and cost-effective cross-border transactions. The initiative reflects the group’s broader strategy to enhance financial independence amidst geopolitical tensions. As BRICS continues to expand, its commitment to innovative financial infrastructures remains a focal point of its objectives.
Original Source: www.gadgets360.com
