BRICS to Use Cryptocurrency for Its Payment System?

With the economic alliance developing its own native financial structure, could the BRICS bloc be set to use cryptocurrency for its payment system? One Russian Senate leader has recently discussed the potential for digital currencies to be a vital part of the alliance system at a BRICS Forum in San Petersburg. Specifically, Central Bank Digital currencies (CBDC).

Earlier this month, Iran called for a payment system to connect all BRICS member’s Central Banks. Crypto could be a rather simple way to do that. According to Chairman of the Russian Federation Council, Valentina Matvienko, that could be a key part of the developing project.

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Digital Currencies Could Play Part in BRICS Payment System

In March, it was announced that the BRICS bloc was working on creating its own payment system. The move sent shockwaves through the geopolitical sector, mostly for its implications on global finance. Now, the digitization of that payment system has caught the attention of many.

The BRICS bloc could be set to use cryptocurrency for its payment system, according to one Russian official. Indeed, Matvienko stated that the drive for a payment system was connected to the bloc’s de-dollarization hopes. Specifically, its decision to do away with “toxic currencies,” weaponized by the West.

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Matvienko noted that decentralized trading was a focus for the payment platform. She said, “None of the participants will be able to limit the actions of others,” through the project. Moreover, it is ensuring its freedom from actions like US sanctions issued in recent years.

“In this case, the digital currencies of the central banks of the association countries can be used,” she said. “The rate of which will be tied to the value of national currencies,” she added. The decision would be interesting for the group. It would provide key way to use national currencies in unilateral trades. Moreover, it will continue to de-dollarize the digital asset class.

The payment system is one of several projects that will de-dollarize the economy. Rumors suggest the bloc is also working on a currency exchange platform. Moreover, they have discussed their own parliamentary. All working to increase the influence of the global south.