The Kremlin has announced plans to create an independent payment system within the BRICS group of nations, employing blockchain and digital currencies.
Kremlin aide Yury Ushakov, in a detailed interview with Russian news agency TASS, highlighted the initiative aimed at developing a financial infrastructure that leverages modern digital technologies, including blockchain, to facilitate transactions independent of traditional banking systems and the US dollar.
BRICS, an acronym for Brazil, Russia, India, China, and South Africa, represents a coalition of five major emerging economies.
These countries, known for their significant influence on regional and global affairs, have been exploring ways to increase their economic independence and reduce their reliance on Western financial systems.
The creation of a BRICS-based payment system marks a critical step towards achieving this goal, offering a new paradigm for international transactions that promises to be efficient, cost-effective, and insulated from political influences.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics,” Ushakov stated.
This initiative reflects a growing trend among nations to explore alternatives to the dollar-dominated global financial system, aiming to enhance transaction security and economic sovereignty.
Ushakov further emphasized the strategic objectives for the year, which include bolstering the role of BRICS in the international monetary and financial system.
This ambition was echoed in the 2023 Johannesburg Declaration, where BRICS leaders expressed their commitment to promoting settlements in their national currencies and strengthening correspondent banking networks to secure and facilitate international transactions.
The ongoing efforts to develop the Contingent Reserve Arrangement, particularly focusing on diversifying beyond the US dollar for transactions, underscore the group’s intent to forge a more balanced and equitable international financial architecture.
“Work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies different from the US dollar,” Ushakov added, signaling a concerted move towards reducing the dollar’s dominance in global trade and finance.
The BRICS nations, with their significant economic and demographic footprints, have long advocated for a more representative global economic governance structure. T
he combined economies of Brazil, Russia, India, China, and South Africa account for a considerable portion of the world’s population and GDP, making their collaborative endeavors, such as this proposed payment system, potentially transformative on a global scale.