In October, Russian President Vladimir Putin confirmed that the BRICS nations are in discussions about utilizing digital currencies to cut back Western affect on fintech. At present, the group is contemplating the creation of a digital belongings platform aimed toward lowering reliance on US {dollars} for worldwide transactions. President Putin has expressed help for this initiative, highlighting that digital currencies may benefit not solely the BRICS international locations but additionally different creating economies.
In accordance with Putin, the BRICS nations are planning to launch a service tentatively known as BRICS Pay, as reported by Crypto Briefing. This platform will likely be utilized by member international locations, together with Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
Constructed on a blockchain community, the platform is predicted to facilitate cross-border settlements for the above-mentioned nations. Monetary belongings reminiscent of cryptocurrencies and CBDCs will allow transactions with out the necessity for brokers or intermediaries. Moreover, utilizing digital belongings for funds can scale back service charges usually charged by cost facilitators for fiat foreign money transactions.
To help these funds in digital currencies, the BRICS nations are additionally seeking to launch a messaging system like SWIFT – which is a safe platform for data sharing that’s utilized by a number of monetary establishments.
The BRICS group has been making an attempt to convey de-dollarisation into impact since earlier this yr. In March this yr, Russian publication TASS reported that the creation of a doubtlessly decentralised platform has been proposed to the group to combine digital belongings into the prevailing monetary programs of the concerned economies.
In recent times, the US greenback has confronted important volatility resulting from consecutive rate of interest hikes within the post-COVID-19 period. For China and Russia, the necessity to scale back reliance on the greenback is especially urgent, because the US has imposed a number of sanctions on funds originating from these international locations.
The sixteenth BRICS Summit was held in Kazan, Russia between October 22 and October 24. The problem of navigating the present worldwide cost programs, which the BRICS view as being dominated by the greenback, was reportedly one of many prime agendas through the assembly.
It’s price noting that India can be collaborating with G20 nations to develop a complete set of worldwide crypto laws. Nevertheless, the RBI and officers from India’s Ministry of Finance have but to reveal any particulars in regards to the digital belongings platform at the moment beneath dialogue by the BRICS group.