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BRICS to use digital currencies for investment payments

BRICS to use digital currencies for investment payments

GrafaGrafa2024/10/20 10:25
By:Mahathir Bayena

BRICS, comprising Brazil, Russia, India, China, and South Africa, is advancing its efforts to integrate digital assets into its investment payment systems.

During the BRICS Business Forum on October 18, Russian President Vladimir Putin announced that the alliance had agreed to utilise cryptocurrencies like Bitcoin and stablecoins for investment payments.

He stated, “We will discuss the use of digital currencies in investment developments by BRICS member states, and this will also benefit other developing and emerging economies with good prospects.”

The shift aims to reduce reliance on Western financial systems, including SWIFT, and create a more resilient financial architecture.

Putin emphasised that this move would open new opportunities for economic growth among emerging nations.

Additionally, discussions are underway to introduce a stablecoin backed by China’s Yuan, further facilitating secure and efficient transactions within the bloc.

In line with this strategy, BRICS recently launched "BRICS Pay," a blockchain-based platform similar to the SWIFT network but designed to handle transactions between BRICS countries without depending on Western-controlled financial institutions.

The group stated, “BRICS Pay will complement the capabilities of existing payment systems and methods, enhancing security, accelerating, and reducing the costs of international transactions.”

BRICS has been working to reduce its reliance on the US dollar for international trade, encouraging the use of local currencies instead.

The bloc has also been expanding its global influence, with new additions including Egypt, Iran, Ethiopia, and the United Arab Emirates.

More than 30 other nations have expressed interest in forming closer ties with BRICS, underscoring the alliance's growing significance in global economic trends.

The next BRICS meeting is scheduled to take place in Kazan, where potential expansions and further strategic initiatives will be discussed.

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