According to Putin, the BRICS nations are planning to launch a service tentatively referred to as BRICS Pay, as reported by Crypto Briefing. This platform might be utilized by member international locations, together with Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates.
Built on a blockchain community, the platform is anticipated to facilitate cross-border settlements for the above-mentioned nations. Financial property equivalent to cryptocurrencies and CBDCs will allow transactions with out the necessity for brokers or intermediaries. Additionally, utilizing digital property for funds can cut back service charges sometimes charged by fee facilitators for fiat forex transactions.
To assist these funds in digital currencies, the BRICS nations are additionally seeking to launch a messaging system like SWIFT – which is a safe platform for info sharing that’s utilized by a number of monetary establishments.
The BRICS group has been making an attempt to convey de-dollarisation into impact since earlier this 12 months. In March this 12 months, Russian publication TASS reported that the creation of a doubtlessly decentralised platform has been proposed to the group to combine digital property into the prevailing monetary methods of the concerned economies.
In latest years, the US greenback has confronted important volatility attributable to consecutive rate of interest hikes within the post-COVID-19 period. For China and Russia, the necessity to cut back reliance on the greenback is especially urgent, because the US has imposed a number of sanctions on funds originating from these international locations.
The sixteenth BRICS Summit was held in Kazan, Russia between October 22 and October 24. The challenge of navigating the present worldwide fee methods, which the BRICS view as being dominated by the greenback, was reportedly one of many high agendas throughout the assembly.
It is price noting that India can be collaborating with G20 nations to develop a complete set of world crypto rules. However, the RBI and officers from India’s Ministry of Finance have but to reveal any particulars in regards to the digital property platform at present underneath dialogue by the BRICS group.
