- BRICS nations are developing an independent payments system, signaling a shift away from the US dollar.
- The initiative aims to enhance the sovereignty of national currencies against external political pressures.
- Russian President Vladimir Putin highlighted this development during the SPIEF 2024 Conference in Saint Petersburg.
BRICS nations collaborate on blockchain-based autonomous payment system to counteract US dollar reliance.
Development of a Sovereignty-Enhancing Payment System
The BRICS coalition, which includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Iran, Egypt, Ethiopia, and the UAE, is working on an autonomous payment system. This development aims to mitigate dependency on the US dollar and shield the participating nations’ currencies from foreign political influence. The move was reiterated at the SPIEF 2024 Conference in Saint Petersburg by Russian President Vladimir Putin.
Integration of Blockchain Technology
Reports suggest that the new payment framework proposed by BRICS will leverage blockchain technology. In an interview with TASS, a Russian state-owned news outlet, Kremlin aide Yury Ushakov detailed that this digital system would be comprehensive, equitable, and economically beneficial. Ushakov stressed the convenience it would offer to governments, businesses, and the general populace, while being insulated from political manipulations.
Enhancing National Currency Networks
Amid the creation of the independent payment system, BRICS countries are keen on enhancing their national banking networks and facilitating trade transactions using their own currencies rather than the US dollar. The effort includes advancing the Contingent Reserve Arrangement to support currency trade diversification.
Conclusion
In summary, the BRICS bloc aims to forge a more autonomous financial future by developing a payment system underpinned by modern technologies such as blockchain. This initiative not only seeks to fortify the sovereignty of national currencies but also aims to provide a politically neutral, cost-effective alternative to the existing dollar-dominated system. This strategic development signifies a noteworthy shift in the global financial landscape.
