In what was perhaps a major U-turn in global economic policies, Russian President Vladimir Putin said it was adopting cryptocurrencies in investments for the bloc.
The move came on day one of the BRICS Business Forum, marking the beginning of a new phase for the alliance made up of Brazil, Russia, India, China, and South Africa.
He underlined that digital currencies would play a crucial role in boosting the financial sovereignty of BRICS members, which would be one more step taken by the bloc to reduce dependence on Western financial systems. The move sets up this week’s BRICS Summit, where more will be learned about the crypto-powered future of the alliance.
This announcement by BRICS places crypto above most other digital assets in global finance. As Alan Draper states, an increasing number of new crypto coins are gaining adoption worldwide. By selecting new coins, investors can benefit from a high upside potential.
One of the key elements to form the backbone of this initiative will include the unveiling of the BRICS Pay platform as a blockchain-based system for making cross-border transactions within the bloc. In Putin’s words, the platform “represents a major tool in countering sanctions pressure, showing the world how to break off the US dollar shackles in international trade.”
Russia has already attempted to establish a financial messaging system like SWIFT and, secondly, keeps testing the digital ruble, scheduled for a full rollout by 2025. Having taken back its ban on digital assets for international settlements, Russia has since been pushing for digital currencies as a way to shore up cross-border trade.
Amidst such changes, the recent announcement at the forum by Putin included further development in regulating digital currencies with supervision by BRICS institutions, something deemed necessary for stability and the increased adoption of new technologies inside the bloc. The joint economic heft within the BRICS group grows day by day, with the upcoming integration of cryptocurrencies expected to further cement the alliance’s financial position in the world.
Alan Draper, a popular crypto expert, nailed it when saying that finding new investment opportunities in digital assets takes a great understanding of their potential. Draper focuses on the importance of screening the projects for liquidity and use cases at a time when BRICS nations are getting closer to wider crypto adoption.
As BRICS nations forge ahead with crypto integration, firm commitments come forth from the alliance for reduced reliance on the US dollar using local and digital currencies. Russia’s intention to take the lead in global digital finance gives one an idea of what international trade and investment might keep pace with cryptocurrencies and blockchain technology.