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AFRICA, ASIA, BRAZIL, BRICS, BRICS NEW DEVELOPMENT BANK, CHINA, DEVELOPMENT, DILMA ROUSSEFF, ECONOMY, EGYPT, ETHIOPIA, EUROPE/ASIA, INDIA, INDONESIA, INFRASTRUCTURE DEVELOPMENT, IRAN, LU, LUIZ INÁCIO LULA DA SILVA, MEXICO, NORTH AMERICA, RIO DE JANEIRO, RUSSIA, SAUDI ARABIA, SOUTH AFRICA, SOUTH AMERICA, TRADE, TRADE RELATIONS, U. S, UAE, UNITED STATES, WASHINGTON
Omar El-Sharif
Brazil Proposes Blockchain-Based Payment System for BRICS
Brazil is proposing a blockchain payment system within the BRICS bloc to reduce transaction costs and improve efficiency, without challenging the U.S. dollar. This plan will be discussed at the upcoming BRICS summit in July. The proposal does not include a common BRICS currency, and concerns about U.S. backlash remain. Brazil is also experiencing a surge in cryptocurrency adoption.
Brazil is advancing a proposal to establish a blockchain-based payment system within the BRICS economic bloc, aimed at enhancing cross-border transactions and reducing the associated financial costs. As Brazil takes on the BRICS presidency, officials clarify that this initiative is not meant to undermine the U.S. dollar’s supremacy.
During the forthcoming BRICS summit scheduled for July in Rio de Janeiro, Brazilian officials are expected to present the blockchain proposal. This system seeks to facilitate trade among member nations, which include China, Russia, India, and South Africa, by simplifying import-export processes and lowering transaction fees. Details on the specific application of blockchain technology in this initiative have not yet been revealed.
The proposed payment framework does not involve creating a common BRICS currency, a notion previously championed by Dilma Rousseff, the president of the BRICS New Development Bank. Furthermore, Brazilian President Luiz Inácio Lula da Silva has refuted earlier claims advocating for a trade alternative to the U.S. dollar.
Despite these clarifications, there are ongoing apprehensions regarding potential reactions from the United States. A former U.S. president, who is presently campaigning for re-election, has previously threatened to implement 100% tariffs on nations that endorse alternatives to the dollar. To alleviate the risks, Brazil aims to introduce the blockchain payment system in a way that reduces the likelihood of economic backlash from Washington.
As BRICS expands to incorporate new members such as Saudi Arabia, Egypt, the UAE, Ethiopia, Iran, and Indonesia, the urgency for a more efficient cross-border payment system has surged. It remains to be seen whether Brazil can adeptly navigate the complex economic and geopolitical landscape.
In parallel, Brazil continues to bolster its position in the global cryptocurrency market, with approximately 26 million citizens, or 12% of the population, owning cryptocurrencies. This development places Brazil among the leading countries worldwide in terms of crypto adoption, highlighting its burgeoning influence in digital currency.
In conclusion, Brazil’s proposal for a blockchain-based payment system within the BRICS bloc aims to facilitate cross-border transactions and reduce costs, distancing itself from creating a new common currency. While promoting financial efficiency among member nations, Brazil must carefully address potential U.S. responses. Additionally, the country’s significant cryptocurrency adoption underscores its commitment to enhancing financial innovations amid growing demand for efficient payment mechanisms.
Original Source: www.cointrust.com
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