Market
BRICS Eyes Crypto Adoption to Drive Economic Development
The BRICS bloc is taking major steps towards integrating digital assets to promote investments and economic development within its member states and across other emerging economies.
This initiative builds on previous discussions about developing a blockchain-powered payment system for the group.
BRICS Advancing Digital Assets for Investment Payments
During the BRICS Business Forum on October 18, Russian President Vladimir Putin announced that the alliance had agreed to incorporate digital assets into their investment payment systems. This decision marks a major shift in how BRICS nations plan to handle cross-border transactions and investments.
Member countries will now be able to settle investment payments using cryptocurrencies such as Bitcoin and stablecoins. There are also ongoing discussions about launching a stablecoin backed by China’s Yuan. This move would further facilitate secure and efficient transactions within the bloc.
Putin emphasized that the move would also benefit other developing nations by opening up new opportunities for economic growth.
“We will discuss the use of digital currencies in investment developments by BRICS member states, and this will also benefit other developing and emerging economies with good prospects,” Putin stated.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
BRICS, consisting of Brazil, Russia, India, China, and South Africa, has been making efforts to assert greater economic independence on the global stage. Over the past year, the group has focused on reducing its reliance on the US dollar in international trade. Instead, they have encouraged the use of local currencies.
In line with this broader strategy, BRICS has launched a new platform called BRICS Pay. This blockchain-based system functions similarly to the SWIFT network. However, it is designed to facilitate transactions between BRICS countries without dependence on Western-controlled financial institutions.
The platform also aims to promote the use of national digital currencies for investment and trade. According to the group, this move would help to build a more resilient financial architecture.
“BRICS Pay will complement the capabilities of existing payment systems and methods, enhancing security, accelerating, and reducing the costs of international transactions,” the group stated.
Meanwhile, the BRICS bloc has been expanding its global influence, with recent additions to its ranks, including Egypt, Ethiopia, Iran, and the United Arab Emirates. More than 30 other countries have shown interest in forming closer ties with the group, reflecting its growing significance in shaping global economic trends.
Read more: Deploying Blockchain Infrastructure: Challenges and Solutions
The next BRICS meeting, scheduled to take place in Kazan, will address potential further expansion and other strategic initiatives. With the bloc expected to drive a significant portion of global economic growth in the coming years, BRICS is positioning itself as a major force in reshaping the global financial landscape.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.