In a recent interview with the Russian News Agency TASS, Kremlin aide Yury Ushakov announced that BRICS nations are poised to develop an autonomous blockchain-based payment system, integrating digital currencies to facilitate seamless and cost-effective global transactions.
Ushakov underscored the coalition’s ambition to enhance financial sovereignty from the US dollar by leveraging cutting-edge digital and blockchain technologies.
Highlighting the significance of the initiative, Ushakov stated, “We believe that establishing an independent BRICS payment system is a pivotal objective for the future, utilizing state-of-the-art tools such as digital technologies and blockchain.”
He emphasized the importance of ensuring the system’s convenience for governments, individuals, and businesses, while prioritizing cost-effectiveness and neutrality from political influences.
Enhancing BRICS’s Impact on the Global Financial System
Ushakov also emphasized BRICS’s commitment to bolstering its influence on the global financial and monetary systems. The 2023 Johannesburg Declaration, adopted by BRICS leaders, emphasized the importance of expanding the use of national currencies for settlements.
The declaration highlighted the benefits of fast, inexpensive, transparent, safe, and inclusive payment systems, aligning with the objectives outlined in the G20 Roadmap on Cross-border Payments.
Additionally, the declaration advocated for knowledge-sharing among BRICS members regarding payment infrastructures and encouraged the use of local currencies in international trade and financial transactions.
Reducing Dependence on the US Dollar
One of the primary goals of the proposed payment system is to diminish the BRICS nations’ reliance on the US dollar. Ushakov emphasized ongoing efforts to develop the Contingent Reserve Arrangement, with a focus on diversifying currency usage beyond the US dollar.
BRICS, initially comprising Brazil, Russia, India, and China, has seen additional member nations including South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. While Bloomberg and BBC reported Saudi Arabia’s acceptance of the invitation, a Reuters report presented conflicting claims, suggesting the country’s deliberation on the matter.