Brazil aims to propose a blockchain payment system for the BRICS bloc, reducing reliance on the US dollar. Discussions will occur at the upcoming BRICS summit in July. The initiative seeks to lower transaction costs and processing times, amidst challenges posed by US economic policies.
Brazil is reportedly preparing a proposal for a blockchain-based payment system for the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa. This initiative aims to reduce reliance on the US dollar for cross-border transactions among member countries and will be discussed during Brazil’s hosting of the annual BRICS summit in Rio de Janeiro this July. Government sources indicate that the proposal may allow for significant cost reductions and faster processing times for transactions.
The inception of this system was proposed by Russia in March, specifically to diminish the influence of the US dollar in internal settlements. Factors such as US interest rate hikes post-COVID-19 and ongoing sanctions against Russia and China have accelerated discussions among BRICS nations. Yury Ushakov, advisor to President Putin, emphasized the capacity of this system to simplify transactions amongst member nations, thereby mitigating US financial politics.
Despite US President Donald Trump’s criticisms of the BRICS bloc, which he claims are efforts to undermine the US dollar, Brazil plans to advocate for this payment system without provoking US hostility. The proposal will be presented as a means to enhance the efficiency of cross-border settlements, rather than a direct challenge to existing currencies.
As the BRICS group continues to expand, new partner nations such as Belarus, Bolivia, and Nigeria have joined as of January 1, alongside approximately 30 other nations expressing interest in membership. This growth reflects the bloc’s increasing prominence and collaboration in global economic matters.
In conclusion, Brazil’s initiative to propose a blockchain-based payment system for the BRICS group represents a strategic move towards financial independence from the US dollar. This proposal aims to enhance cross-border transactions among member countries while fostering economic collaboration. As the BRICS group expands, its influence in global finance may continue to grow, potentially shifting the dynamics of international currency reliance.
Original Source: www.gadgets360.com
