BRICS Moves Towards Establishing Its Own Cryptocurrency and Blockchain-Based Payment System

On March 5, 2024, BRICS countries announced a groundbreaking initiative to establish a cryptocurrency and blockchain-based payment system, aiming to provide a new alternative to the US dollar and revolutionize cross-border trade settlements.

This move, highlighting the potential for significant impacts on the global financial landscape and the cryptocurrency market, is a step towards reducing reliance on the US dollar and fostering financial independence among the BRICS nations.

A New Alternative to the US Dollar

On March 5, 2024, the BRICS nations, comprised of Brazil, Russia, India, China, and South Africa, announced their plans to establish a unique payment system based on cryptocurrency and blockchain technology.

This newly announced payment system is described as "an independent payment system for cross-border trade settlements," aiming to position itself as a new alternative to the US dollar.

The system is under development with the goal of becoming "a government, corporate, and citizen-friendly payment system." If successful, it has the potential to benefit a wide range of individuals, from government entities to the general populace.

BRICS has been preparing to move away from the US dollar for some time, and in 2019, it was reported that discussions were underway regarding a common cryptocurrency aimed at addressing reliance on the US dollar.

Should the five countries of Brazil, Russia, India, China, and South Africa decisively move away from the US dollar, it could lead to a decline in the dollar's credibility and value.

This scenario might also prompt a shift of funds into cryptocurrencies like Bitcoin, thus drawing significant attention from the cryptocurrency industry to this development.

Enhancing Global Presence in the Financial System

Russian diplomat Yuri Ushakov stated that "BRICS's agenda this year is to enhance its global presence in the financial system."

He mentioned this in an interview with Russia's state-run TASS news agency, though the launch schedule for the BRICS payment system has not been disclosed.

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.

It is anticipated that more details about this new mechanism will be unveiled at the 16th BRICS summit in October 2024.