Russian President Vladimir Putin announced during the BRICS Business Forum in Moscow that the bloc will continue discussing the use of digital currencies in investment developments.
Putin noted that Russia and other BRICS members have already been working on a SWIFT-like financial messaging system and the use of national digital currencies in financing high-growth investment projects.
He highlighted that 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. Putin also welcomed the inclusion of Egypt, Ethiopia, Iran, and the UAE into the bloc, highlighting that over 30 countries have expressed interest in cooperating.
As part of Russia’s contributions to BRICS, Putin further outlined new financial initiatives, including a joint cross-border payments system and a reinsurance company. He even called on the New Development Bank, BRICS’ multilateral development institution, to invest in technology, infrastructure, e-commerce, and artificial intelligence across the Global South.
BRICS Aims to Transform Global Trade
A geopolitical economy report earlier revealed that the BRICS organization, which focuses on the Global South, has plans for international monetary and financial systems, aiming to challenge the dominance of the US dollar. In its role as BRICS chair for 2024, Russia already proposed the BRICS Cross-Border Payment Initiative (BCBPI), enabling member countries to conduct trade using their national currencies.
As per the report, this “multi-currency system” will feature new tools to reduce reliance on the dollar and promote investment within BRICS nations and other emerging markets. Key initiatives include a BRICS Clear platform, a “new securities accounting and settlement system,” and financial instruments issued in national currencies.
The report added that BRICS planned to explore distributed ledger technology (DLT), such as blockchain, to promote the use of central bank digital currencies (CBDCs). This would allow nations to directly settle trade imbalances without relying on the SWIFT system or third-country correspondent banks, as explained previously.
The organization is also considering the creation of a BRICS Grain Exchange and a related pricing agency. This initiative would establish trading hubs for commodities like grain, oil, natural gas, and gold, which could also be used for settling trade imbalances, the report noted.
The BRICS report also included a list of countries whose reserves have been frozen by the West, including Russia, Venezuela, Iran, Syria, Libya, Afghanistan, and the DPRK (North Korea).
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