Brazil to Propose Support for Blockchain Payment System for BRICS: Report

Brazil is reportedly engaged on a proposal to create a blockchain-based cost system for inner use by the BRICS financial bloc. The group has been discussing methods to scale back reliance on the US greenback for inner cross-border transactions since 2024. Brazil, Russia, India, China, and South Africa have been the founding international locations of the BRICS group. Egypt, Ethiopia, Iran, and the UAE joined the group final 12 months, 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. During the occasion, Brazil will host discussions on the subject of blockchain primarily based funds, in keeping with a report in native publication O Globo that cites authorities sources acquainted with the matter.

If applied, this method would supply a safe, clear, and everlasting monetary infrastructure designed for the BRICS group. The group reportedly believes that the system may considerably shorten the transaction processing window between member international locations for method cheaper prices. As of now, it stays unclear if the BRICS will introduce a brand new crypto token to course of settlements through this method or use current stablecoins and CBDCs.

Russia proposed this method final March to curb using the US greenback for inner settlements. A variety of components, like consecutive rate of interest hikes from the US after the COVID-19 pandemic and a number of other financial sanctions in opposition to 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 may 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 attempting to sideline the US greenback. The US President said he would intensify tariff charges by a 100% in opposition to the BRICS nations.

According to experiences, Brazil will is trying to assist the blockchain cost platform, with out instigating the US. Rio Times said Brazil will pitch the creation of this cost system as a challenge to simplify cross-border settlements, fairly than as a technique to substitute any forex.

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 ‘associate nations’. Around 30 different international locations have proven an curiosity in becoming a member of the group.