Russia, a member of the BRICS alliance, has announced the development of a new blockchain-based payment system. The system aims to become an independent mechanism for conducting transactions among its member nations.
Collaboration Within BRICS for Payment System Innovation
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is set to collaborate on developing a payment system leveraging blockchain technology and digital innovations. This initiative forms part of a broader strategy to bolster its influence within the international monetary framework.
Kremlin aide Yury Ushakov disclosed the plans in an interview with TASS, a Russian news agency. Ushakov stressed the importance of this initiative, highlighting the need for a system that is convenient, politically neutral, and economically efficient.
Ushakov referenced the objectives outlined in the 2023 Johannesburg Declaration, focusing on increasing settlements in national currencies and diversifying correspondent banking networks for enhanced transaction security. However, he did not provide a specific timeline for the launch of the new blockchain payment system.
BRICS’ De-dollarization Efforts
The group is actively pursuing de-dollarization, seeking alternatives to the U.S. dollar in international settlements. This endeavor extends to developing the Contingent Reserve Arrangement using currencies other than the U.S. dollar.
The move towards a blockchain-based payment system aligns with global financial trends. Klaas Knot, Chair of the Financial Stability Board, recently highlighted the importance of crypto assets, tokenization, and financial stability in maintaining global financial stability.
The Russian Finance Ministry, in collaboration with the Bank of Russia and other BRICS partners, is actively working on developing the “BRICS Bridge” multisided payment platform. This platform aims to enhance the effectiveness and accessibility of the worldwide monetary system, as reported by TASS.
