Brazil is reportedly engaged on a proposal to create a blockchain-based fee system for inner use by the BRICS financial bloc. The group has been discussing methods to cut back reliance on the US greenback for inner cross-border transactions since 2024. Brazil, Russia, India, China, and South Africa had been the founding nations 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. Through 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 carried out, this method would supply 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 nations for manner cheaper prices. As of now, it stays unclear if the BRICS will introduce a brand new crypto token to course of settlements by way of this method or use present stablecoins and CBDCs.
Russia proposed this method final March to curb using the US greenback for inner settlements. A variety of elements, like consecutive rate of interest hikes from the US after the COVID-19 pandemic and several other financial sanctions towards 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 making an attempt to sideline the US greenback. The US President mentioned he would intensify tariff charges by a 100 p.c towards the BRICS nations.
In accordance with experiences, Brazil will is trying to help the blockchain fee platform, with out instigating the US. Rio Occasions mentioned Brazil will pitch the creation of this fee system as a undertaking to simplify cross-border settlements, quite than as a technique to exchange any foreign money.
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 nations have proven an curiosity in becoming a member of the group.
