Saint Petersburg, Russia – A group of nations led by Russia and China are developing an “independent payments system” to reduce their reliance on the US dollar and avoid “external interference.”
Putin’s Statement
Russian President Vladimir Putin announced the initiative at the SPIEF 2024 Conference in Saint Petersburg. He emphasized the need to protect the sovereignty of national currencies.
“Within BRICS [Brazil, Russia, India, China, South Africa], we’re working on shaping an independent payment system, free from political pressure, abuse, and external sanctional interference.”
Blockchain Technology
Reports suggest that the BRICS nations will use blockchain technology to power the new payments system.
Benefits of the System
According to Kremlin aide Yury Ushakov, the system will be:
- Fully digital
- Fair
- Cost-effective
- Convenient for governments, businesses, and individuals
- Free from political influence
Focus on National Currencies
While the payments system is still under development, BRICS nations are also working to boost banking networks and trade in their own currencies.
Contingent Reserve Arrangement
The Contingent Reserve Arrangement, a mechanism for providing financial assistance among BRICS nations, will be expanded to include currencies other than the US dollar.
