BRICS, an intergovernmental organization consisting of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates, announces the creation of an independent payment system based on digital currencies and blockchain.
Yury Ushakov, advisor to the Kremlin of Russia, revealed in an interview with the Russian news agency TASS that work is underway to establish an independent payment system based on digital currencies and blockchain. This is part of the BRICS Contingent Reserve Arrangement (CRA) framework to protect against global liquidity pressures, including adverse effects from global financial pressures.
This is an important announcement from the BRICS countries as they are mainly advocating the use of currencies different from the US dollar. The effort to reduce the dollar’s dominance has made significant gains amid recent inflation and economic slowdown.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on advanced tools such as digital technologies and blockchain. The most important thing is to ensure that it is convenient for governments, ordinary people and businesses, as well as cost-effective and free from politics.”
He added that the countries will work together to improve the role of BRICS in the international monetary and financial system. The BRICS CRA is generally considered a competitor to the International Monetary Fund (IMF).
Recent reports revealed cooperation between the Russian Ministry of Finance, the Bank of Russia and BRICS countries to prepare a number of initiatives to improve the international monetary and financial system. This includes the establishment of the BRICS Bridge multisided payment platform.
BRICS welcomed Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) to join the effort to reduce the dollar’s dominance while improving the international monetary and financial system.
Source: https://cryptobenelux.com/2024/03/05/brics-plant-digitaal-valuta-en-blockchain-gebaseerd-betalingssysteem-voor-de-dollarisatie/
