Brazil is reportedly engaged on a proposal to create a blockchain-based fee system for inside use by the BRICS financial bloc. The group has been discussing methods to scale back reliance on the US greenback for inside cross-border transactions since 2024. Brazil, Russia, India, China, and South Africa have been the founding international locations of the BRICS group. Egypt, Ethiopia, Iran, and the UAE joined the group final yr, and Brazil assumed the BRICS Presidency on January 1.
The nation is ready to host the annual BRICS summit in Rio de Janeiro in early July. In the course of the occasion, Brazil will host discussions on the subject of blockchain based mostly funds, in accordance with a report in native publication O Globo that cites authorities sources acquainted with the matter.
If applied, this method would offer a safe, clear, and everlasting monetary infrastructure designed for the BRICS group. The group reportedly believes that the system might considerably shorten the transaction processing window between member international locations for approach cheaper prices. As of now, it stays unclear if the BRICS will introduce a brand new crypto token to course of settlements through this method or use present stablecoins and CBDCs.
Russia proposed this method final March to curb the usage of the US greenback for inside settlements. A lot of components, like consecutive rate of interest hikes from the US after the COVID-19 pandemic and a number of other financial sanctions in opposition to Russia and China prompted the BRICS nations to contemplate the concept. Yury Ushakov, an advisor to President Putin mentioned on the time that this method might curtail US-initiated monetary politics and simplify cross-border transactions among the many BRICS nations.
US President Donald Trump has criticised the BRICS bloc for attempting to sideline the US greenback. The US President mentioned he would intensify tariff charges by a 100% in opposition to the BRICS nations.
In response to stories, Brazil will is trying to assist the blockchain fee platform, with out instigating the US. Rio Occasions mentioned Brazil will pitch the creation of this fee system as a challenge to simplify cross-border settlements, fairly than as a solution to substitute any forex.
The BRICS group, in the meantime, continues to develop. On January 1, the group added Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria as ‘accomplice nations’. Round 30 different international locations have proven an curiosity in becoming a member of the group.