Moscow is spearheading the development of a digital payment platform for the BRICS nations. This innovative approach aims to reduce reliance on the U.S. dollar, utilizing cutting-edge blockchain technology. Kremlin aide Yury Ushakov shared insights with TASS, a state-owned news outlet, on February 5, highlighting the project’s goals.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.”
Yury Ushakov
The plan involves Brazil, Russia, India, China, South Africa, along with recent members Egypt, Ethiopia, Iran, and the United Arab Emirates. This coalition seeks to harness digital currencies, possibly integrating Central Bank Digital Currencies (CBDCs). Russia’s exploration into a digital ruble underscores its commitment to this digital transition. Ushakov outlined the envisioned benefits: cost efficiency and neutrality in operations, crucial for the consortium’s success.
The initiative promises to elevate BRICS’ stature in global financial and monetary systems by 2024. Yet, specifics on the blockchain platform’s rollout remain under wraps.
Enhancing Financial Independence
This announcement trails Russian Finance Minister Anton Siluanov’s advocacy for an independent financial framework for BRICS. Such a system would facilitate smooth trade and economic interactions, devoid of political influence. Moscow’s push for a blockchain-based mechanism gains momentum amid growing Western sanctions. Russian Prime Minister Mikhail Mishustin, in September 2023, stressed the importance of leveraging blockchain and digital assets for cross-border settlements. This strategy is seen as a gateway to bolstering foreign investment in the region.