Key Takeaways
- BRICS discusses digital currencies to reduce US dollar dependency.
- New BRICS Pay platform introduced to enhance cross-border transactions.
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At the BRICS Business Forum in Moscow, Russian President Vladimir Putin announced that the bloc will continue discussing the use of digital currencies in investment developments.
JUST IN: BRICS to use digital currencies for investment developments. pic.twitter.com/i7u7JFsC55
— BRICS News (@BRICSinfo) October 18, 2024
This highlights the group’s broader strategy to reduce reliance on the US dollar and assert greater economic independence. Putin noted that digital currencies could benefit both BRICS members and developing economies.
Putin mentioned that Russia, along with other BRICS members, has already been working on a SWIFT-like financial messaging system and the use of national digital currencies in financing high-growth investment projects.
Alongside digital currencies, the BRICS bloc is preparing to launch the BRICS Pay platform, a blockchain-based payment system aimed at facilitating cross-border transactions within the alliance.
The platform was introduced at the forum and is considered a key tool to reduce reliance on Western financial systems. BRICS members, especially Russia and China, have pushed for its adoption to bypass US sanctions and decrease dependence on the dollar.
In addition to digital currency discussions, Putin addressed BRICS expansion, welcoming the inclusion of Egypt, Ethiopia, Iran, and the UAE into the bloc.
He highlighted that over 30 countries have expressed interest in cooperating with BRICS, and the upcoming summit in Kazan will explore potential new members.
Putin stressed that BRICS will generate the majority of global economic growth in the coming years, citing the bloc’s large size and fast-growing economies compared to Western nations.
As part of Russia’s contributions to BRICS, Putin outlined new financial initiatives, including a joint cross-border payments system and a reinsurance company.
Putin further called on the New Development Bank, BRICS’ multilateral development institution, to invest in technology, infrastructure, e-commerce, and artificial intelligence across the Global South.
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