- Russia has announced the development of a new blockchain-based payment system within the BRICS alliance, aiming to offer an alternative to the US dollar for trade settlements.
- The system is intended to be user-friendly, benefiting governments, businesses, and citizens, and will incorporate digital assets and cryptocurrencies on the blockchain.
- The establishment of this payment system is seen as a strategic move by BRICS to enhance its global financial presence, with the specific timeline for its launch likely to be revealed at the 16th summit in October.
Russia has announced to utilise a new blockchain-based payment system within the BRICS alliance, intending to be user-friendly.
A new blockchain-based payment system will be utilised in BRICS
BRICS member Russia on Tuesday announced the creation of a new blockchain-based payment system. The blockchain and cryptocurrency-based payment mechanism will be an independent trade settlement system. The new BRICS payment system will be positioned as an alternative to the US dollar.
The payment system is intended to be friendly to governments, businesses and even ordinary citizens. Therefore, if the system is successful, all segments of the population, from governments to ordinary people, will benefit greatly from it.
Russian diplomat Yuri Ushakov confirmed that the new BRICS payment mechanism will use state-of-the-art technology to incorporate digital assets and cryptocurrencies into the blockchain.
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BRICS is trying to enhance its global presence
The BRICS payment system challenges the United States dollar by allowing member countries and other developing countries to settle cross-border transactions under a new mechanism. This development will increase pressure on the US dollar and reduce its supply and demand on the global market.
Ushakov emphasised that the specific task of the BRICS countries this year is to strengthen their presence in the global financial system. Payment systems will be the first step in moving the BRICS countries onto a new track of global dominance.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics,” he said to Tass.
However, Ushakov did not disclose a tentative timetable for launching the new BRICS payment system. The new mechanism will most likely be unveiled at the 16th summit in October this year.
