The BRICS nations (Brazil, Russia, India, China, and South Africa) are looking to ditch the Western financial system and embrace digital currencies.
Putin’s Crypto Push
During a recent business forum in Moscow, Russian President Vladimir Putin urged BRICS members to adopt cryptocurrencies and other digital money. He believes that this move would reduce their reliance on the US dollar and benefit not only BRICS countries but also other developing economies.
Putin emphasized the need for comprehensive regulations before diving into widespread crypto adoption. He also highlighted the importance of creating a robust framework governed by BRICS nations.
BRICS Members Leading the Way
Two BRICS members, Russia and China, are already exploring the use of digital currencies.
- Russia:
The country is set to start pilot testing its digital ruble in July of next year. This trial will involve selected individuals and companies making purchases using the digital currency.
- China: China has made significant progress with its Digital Currency Electronic Payment (DCEP), also known as e-CNY. This digital yuan is a government-backed initiative operated by the Central Bank of China. It was launched in response to public demand for a modern payment solution. As of the end of 2021, over 261 million individual wallets had been opened, and transactions worth 87.565 billion Chinese yuan had been conducted.
BRICS Pay: A New Payment Platform
In addition to digital currencies, BRICS has launched a new payment platform called BRICS Pay. This blockchain-based platform aims to streamline cross-border transactions within the bloc, providing an alternative to SWIFT and potentially bypassing US sanctions.
BRICS Pay represents the bloc’s ambition to establish a self-reliant economic framework that operates independently of traditional power structures.
