Could BRICS Implement Cryptocurrency for Its Payment System. Russian Senate Leader Discusses CBDC Potential at BRICS Forum
Recently, a Russian Senate leader highlighted the potential for digital currencies, specifically Central Bank Digital Currencies (CBDC), to play a crucial role in the BRICS alliance’s financial framework. At a BRICS Forum in St. Petersburg, discussions centered around the alliance developing its own native financial structure, potentially integrating digital currencies.
Earlier this month, Iran proposed a payment system linking all BRICS member central banks, suggesting cryptocurrency as a straightforward solution. Chairman of the Russian Federation Council, Valentina Matvienko, emphasized this could be a significant aspect of the alliance’s evolving initiatives.
Digital Currencies Considered Integral to BRICS Payment System
In March, the BRICS bloc announced plans to develop its own payment system, sparking significant interest in the geopolitical arena due to its potential impact on global finance. Now, the focus has shifted to the digitization of this payment system, drawing widespread attention.
According to a Russian official, the BRICS bloc may adopt cryptocurrency for its payment system. Matvienko emphasized that this initiative is driven by the bloc’s aspirations for de-dollarization, aiming to move away from “toxic currencies” wielded as geopolitical tools by Western nations.
Matvienko Highlights Decentralized Trading Focus in BRICS Payment System
Matvienko underscored the BRICS payment platform’s emphasis on decentralized trading, stating that no participant would have the authority to restrict others’ actions within the project. She also emphasized its resilience against recent US sanctions.
She elaborated, “In this context, the digital currencies issued by member countries’ central banks could be employed,” adding that these currencies would maintain value tied to their respective national currencies. This move is seen as pivotal for the group, facilitating unilateral trade transactions using national currencies and advancing the de-dollarization of digital assets.
The payment system is part of a broader strategy to reduce reliance on the dollar. Reports suggest that the bloc is also developing a currency exchange platform and exploring the establishment of a joint parliamentary body, all aimed at bolstering the influence of the global south.
