Brazil is proposing a blockchain-based payment system for internal use by BRICS to reduce reliance on the US dollar. Discussions will take place at the July summit in Rio de Janeiro. The system aims to facilitate secure and cost-effective transactions among member countries, responding to geopolitical pressures and economic sanctions. BRICS continues to grow, adding numerous partner nations recently.

Brazil is working on a proposal to establish a blockchain-based payment system intended for internal use within the BRICS economic bloc. This initiative aligns with ongoing discussions among BRICS countries—Brazil, Russia, India, China, and South Africa—since 2024, aimed at decreasing dependence on the US dollar for cross-border transactions. Egypt, Ethiopia, Iran, and the UAE joined BRICS in the previous year, while Brazil assumed the presidency of the bloc on January 1.

The forthcoming annual BRICS summit in Rio de Janeiro this July will feature conversations around blockchain payment systems, as reported by the local publication O Globo, citing governmental sources. If successful, this payment infrastructure promises to facilitate secure, transparent, and permanent financial transactions among BRICS nations, potentially speeding up processing times and reducing transaction costs.

The formulation of this system stems from a proposal initially made by Russia in March, aimed at mitigating the influence of the US dollar in internal settlements. Economic sanctions imposed on Russia and China, along with US interest rate hikes post-pandemic, have motivated BRICS countries to explore alternative financial solutions. Yury Ushakov, an advisor to President Putin, emphasized that such a system could counteract US financial policies and ease transactions among member states.

Despite criticism from US President Donald Trump regarding the BRICS bloc’s intentions to bypass the dollar, Brazil aims to promote this blockchain payment project as a means to streamline cross-border engagements without provoking the United States. In a revealing twist, the membership of BRICS continues to expand, having recently included several new partner nations.

As of January 1, the bloc welcomed partner nations such as Belarus, Bolivia, and Kazakhstan, among others. Furthermore, approximately 30 additional countries have expressed interest in joining BRICS, reflecting its influence and reach in international economic discussions.

Brazil’s proposal for a blockchain payment system under the BRICS framework signals a significant shift towards reducing reliance on the US dollar for international transactions. The initiative emphasizes secure and cost-effective financial exchanges among member nations, while also navigating geopolitical sensitivities. As BRICS expands its membership and influence, the proposed payment system may enhance economic collaboration and regional integration.

Original Source: www.gadgets360.com

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