In October, Russian President Vladimir Putin confirmed that the BRICS nations are in discussions about utilizing digital currencies to scale back Western affect on fintech. Presently, the group is contemplating the creation of a digital property platform aimed toward decreasing reliance on US {dollars} for worldwide transactions. President Putin has expressed assist for this initiative, highlighting that digital currencies may benefit not solely the BRICS international locations but additionally different growing economies.
In keeping with Putin, the BRICS nations are planning to launch a service tentatively referred to as BRICS Pay, as reported by Crypto Briefing. This platform shall 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 anticipated to facilitate cross-border settlements for the above-mentioned nations. Monetary property comparable to cryptocurrencies and CBDCs will allow transactions with out the necessity for brokers or intermediaries. Moreover, utilizing digital property for funds can scale back service charges usually charged by fee facilitators for fiat foreign money transactions.
To assist these funds in digital currencies, the BRICS nations are additionally trying 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 deliver de-dollarisation into impact since earlier this yr. In March this yr, Russian publication TASS reported that the creation of a probably decentralised platform has been proposed to the group to combine digital property into the prevailing monetary programs of the concerned economies.
Lately, the US greenback has confronted vital 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 difficulty of navigating the present worldwide fee programs, which the BRICS view as being dominated by the greenback, was reportedly one of many prime agendas in the course of the assembly.
It’s value noting that India can be collaborating with G20 nations to develop a complete set of world crypto rules. Nonetheless, the RBI and officers from India’s Ministry of Finance have but to reveal any particulars concerning the digital property platform presently beneath dialogue by the BRICS group.