Brazil’s presidency of BRICS is focusing on blockchain to enhance cross-border trade, moving away from earlier currency discussions. The central bank’s Drex project aims to improve transaction efficiency amidst regulatory challenges. Stablecoins may also play a future role, though no official decisions have yet been made, as indicated by ongoing conversations within the bloc.
Brazil is prioritizing blockchain technology to enhance cross-border trade among BRICS nations, which include Russia, India, and China. This strategic focus, as reported by Brazilian newspaper Valor Econômico, is set against the backdrop of Brazil’s presidency of the bloc, which commenced in January 2023. Emphasis on blockchain reflects a shift from previous discussions about establishing a common currency among BRICS members.
The intention is not to develop a currency that might rival the dollar’s status as the predominant medium of exchange. Instead, Brazil aims to streamline international transactions using blockchain, seeking to improve efficiency. Reports indicate that Brazil’s central bank has been investigating a project named Drex, designed to establish a tokenized framework for financial transactions, though challenges relating to privacy and regulatory measures are being encountered.
Additionally, there is mention of a potential network mirroring Brazil’s Pix payment system, although this could introduce governance and sovereignty concerns for the participating nations. Furthermore, in April 2024, Russian Deputy Minister of Foreign Affairs Sergey Ryabkov indicated that stablecoins might facilitate international settlements between BRICS members, having established a special communication channel among central banks, though no formal conclusions regarding this topic have been reached. As of March 2025, reports suggest that Russian oil firms are employing various cryptocurrencies and stablecoins for trade, converting currencies like the Chinese yuan and Indian rupee into roubles.
In conclusion, Brazil’s BRICS presidency is marked by a significant emphasis on blockchain technology to enhance trade among member countries, moving away from the idea of a shared currency. Initiatives like the Drex project aim to improve the efficiency of international transactions while addressing privacy and regulation challenges. Although stablecoins have been mentioned for potential use in international settlements, concrete decisions remain outstanding, indicating a cautious but forward-thinking approach to financial collaboration within BRICS.
Original Source: crypto.news
