HomeNewsBRICS Announces Digital Currency Project, Blockchain Payment System to Reduce Dollar Influence

BRICS Announces Digital Currency Project, Blockchain Payment System to Reduce Dollar Influence

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  • BRICS launches a blockchain-based payment system to facilitate de-dollarization and enhance global financial diversity.
  • Mexico expresses interest in joining BRICS, reflecting the bloc’s expanding influence and appeal among emerging economies.

BRICS, initially comprising Brazil, Russia, India, China, and South Africa, has announced the introduction of an independent payment system leveraging the potential of digital currencies and blockchain technology.

This groundbreaking initiative not only marks a significant shift in the global financial landscape but also symbolizes the bloc’s ambitious drive towards de-dollarization.

With the recent inclusion of Egypt, Ethiopia, Iran, and the United Arab Emirates, and now with Mexico expressing its desire to join in 2024, the BRICS alliance is rapidly expanding its influence and membership.

A Unified Push Against Dollar Dominance

The newly unveiled payment system is designed to facilitate international transactions outside the traditional reliance on the US dollar, thereby fostering a more diversified and resilient global financial system.

The move comes at a time when the world is grappling with inflation and economic slowdowns, prompting nations to seek alternatives to the dollar-centric trade and financial transactions.

The essence of this initiative is the embracement of state-of-the-art digital technologies, including blockchain. Yury Ushakov, a Kremlin aide, emphasized in his dialogue with TASS, the Russian News Agency, the critical importance of ensuring that the new payment mechanism is accessible, cost-effective, and politically neutral for all stakeholders involved.

This approach is expected to streamline transactions for governments, businesses, and individuals alike, making it a cornerstone for future financial interactions within the BRICS nations and beyond.

Additionally, BRICS countries have also shifted their loans to the yuan, no longer adopting the dollar, as previously reported by ETHNews.

Strengthening Global Stature

This strategic maneuver is not just about financial transactions; it’s a bold statement on the BRICS nations’ intent to redefine their role in the global monetary and financial systems.

The BRICS Contingent Reserve Arrangement (CRA), serving as the foundation for this initiative, is seen as a direct competitor to traditional financial institutions like the International Monetary Fund (IMF).

The establishment of the BRICS Bridge, a multi-sided payment platform, further cements this intent, showcasing the bloc’s commitment to fostering a more inclusive and balanced global financial ecosystem.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628