BRICS is developing a blockchain-based payment system

Ushakov stressed that the system is convenient, free from political influence, and has significant economic benefits.

Russia, a member of the BRICS alliance, has announced that it is developing a new blockchain-based payment system that aims to revolutionize the way trade is settled.

The system will be an independent mechanism for trading between BRICSs.

Blockchain-based payment system plan

The BRICS consortium, made up of Brazil, Russia, India, China and South Africa, plans to collaborate on the development of a payment system that leverages blockchain technology and digital innovation. The move is part of a broader strategy to expand its influence in the international monetary system.

This was announced by Kremlin aide Yury Ushakov in an interview with the Russian news agency TASS. Emphasizing the importance of this initiative, Ushakov said: "We believe that the creation of an independent BRICS payment system, which will be based on digital technologies and advanced tools such as blockchain, is an important goal for the future. ”

Ushakov stressed the importance of this effort, emphasizing the need for a system that is not only convenient for governments, businesses, and ordinary people, but also free from political influence and cost-effective.

He further highlighted the objectives outlined in the 2023 Johannesburg Declaration, which emphasizes increasing national currency settlements and diversifying correspondent banking networks to ensure the security of international transactions. However, Ushakov did not disclose the timeline for the launch of the new BRICS blockchain payment system.

BRICS takes a step towards de-dollarization

The BRICS Group has been actively promoting de-dollarization, looking for alternatives to the US dollar in international settlements. Their efforts are not limited to payment systems and will continue to work on contingency reserve arrangements in currencies other than the United States dollar.

Ushakov stressed: "Work will continue to be made on the development of contingency reserve arrangements, primarily with regard to the use of currencies different from those of the US dollar. ”

The move to a blockchain-based payment system is in line with global financial trends. In a recent letter to G20 finance ministers, FSB Chairman Klaas Knot stressed that crypto assets, tokenization, and artificial intelligence are among the top priorities for maintaining global financial stability.

The latest TASS report also shows that the Russian Ministry of Finance is working with the Central Bank of Russia and other BRICS partners to develop the "BRICS Bridge" multilateral payment platform. The platform aims to improve the effectiveness and accessibility of the global monetary system.