Russia, as part of the BRICS alliance, has announced plans to launch a new payment system using blockchain technology with the aim of transforming the trade settlement system.
This system is expected to provide an independent mechanism for financial transactions between the member states of the alliance, which include:
Brazil, Russia, India, China, and South Africa.
This plan comes within the framework of joint efforts by the BRICS countries to use digital innovations and blockchain technology to enhance their influence in the international monetary system.
Kremlin aide Yuri Ushakov stressed the utmost importance of this initiative in an interview with the Russian news agency TASS, noting that the goal is to create an independent payment system based on the latest technologies and free from political influences, in addition to being economically efficient and convenient for governments, companies and individuals alike.
He also referred to the goals announced in the Johannesburg Declaration for 2023, which calls for increasing settlements in national currencies and diversifying correspondent banking networks to ensure the security of international transactions.
However, no specific timeline has been disclosed for the launch of the new blockchain-based payment system.
In addition to developing the payment system, the BRICS group is striving to end the dominance of the dollar in international settlements, exploring alternatives to the US dollar.
Ushakov points to continued work on developing emergency reserve arrangements that use alternative currencies to the US dollar.
This move towards blockchain technology in the financial system is in line with global trends, as Klass Knott, Chairman of the Financial Stability Board, stressed the importance of crypto assets, tokenization, and artificial intelligence in maintaining global financial stability.
In a recent report from TASS, it was revealed that the Russian Ministry of Finance, in cooperation with the Bank of Russia and other BRICS partners, is developing a BRICS Bridge platform to enhance the effectiveness and accessibility of the global monetary system.
