BRICS CREATES BLOCKCHAIN-BASED PAYMENT SYSTEM 

Ushakov emphasized the system’s efficiency, independence from political pressures, and economic benefits.

Russia, as part of the BRICS consortium, is spearheading the creation of a novel payment system powered by blockchain technology to transform trade transactions.

This initiative aims to establish a standalone transaction mechanism for the nations within the BRICS group.

Plans for a Blockchain Payment System

The consortium, which includes Brazil, Russia, India, China, and South Africa, is setting its sights on crafting a payment solution that harnesses blockchain and digital advancements. This effort is seen as a move to bolster BRICS’ role in the global financial ecosystem.

Yury Ushakov, a Kremlin advisor, shared these developments in a TASS agency interview on Tuesday. Ushakov underscored the project’s critical nature, noting, “The creation of a BRICS-centric payment system, leveraging cutting-edge technologies like digital and blockchain innovations, stands as a pivotal objective for our future.”

Ushakov pointed out the system’s design to offer convenience and economic efficiency while being insulated from political sway for states, businesses, and citizens alike.

He also referenced the 2023 Johannesburg Declaration’s goals, which include broadening transactions in local currencies and enhancing correspondent banking networks to secure international transactions. Yet, the timeline for the BRICS blockchain payment system’s debut remains under wraps.

BRICS’ Journey Towards Reducing Dollar Dependency

The BRICS bloc is actively pursuing strategies to reduce reliance on the U.S. dollar in global settlements, with efforts expanding beyond the new payment system to include the Contingent Reserve Arrangement that explores non-dollar currencies.

“Efforts will persist in refining the Contingent Reserve Arrangement with a focus on adopting non-U.S. dollar currencies,” stated Ushakov.

This shift towards blockchain reflects wider financial trends. Klaas Knot, the Financial Stability Board’s Chair, highlighted to G20 finance ministers the importance of crypto assets, tokenization, and artificial intelligence in safeguarding global financial health.

A TASS report also highlighted the Russian Finance Ministry’s collaboration with the Bank of Russia and BRICS counterparts in developing the “BRICS Bridge,” a multisided payment platform aimed at increasing the global financial system’s efficiency and reach.

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