TheBRICSblocistakingmajorstepstowardsintegratingdigitalassetstopromoteinvestmentsandeconomicdevelopmentwithinitsmemberstatesandacrossotheremergingeconomies.
Thisinitiativebuildsonpreviousdiscussionsaboutdevelopingablockchain-poweredpaymentsystemforthegroup.
BRICSAdvancingDigitalAssetsforInvestmentPayments
DuringtheBRICSBusinessForumonOctober18,RussianPresidentVladimirPutinannouncedthatthealliancehadagreedtoincorporatedigitalassetsintotheirinvestmentpaymentsystems.ThisdecisionmarksamajorshiftinhowBRICSnationsplantohandlecross-bordertransactionsandinvestments.
MembercountrieswillnowbeabletosettleinvestmentpaymentsusingcryptocurrenciessuchasBitcoinandstablecoins.TherearealsoongoingdiscussionsaboutlaunchingastablecoinbackedbyChina’sYuan.Thismovewouldfurtherfacilitatesecureandefficienttransactionswithinthebloc.
Putinemphasizedthatthemovewouldalsobenefitotherdevelopingnationsbyopeningupnewopportunitiesforeconomicgrowth.
“WewilldiscusstheuseofdigitalcurrenciesininvestmentdevelopmentsbyBRICSmemberstates,andthiswillalsobenefitotherdevelopingandemergingeconomieswithgoodprospects,”Putinstated.
BRICS,consistingofBrazil,Russia,India,China,andSouthAfrica,hasbeenmakingeffortstoassertgreatereconomicindependenceontheglobalstage.Overthepastyear,thegrouphasfocusedonreducingitsrelianceontheUSdollarininternationaltrade.Instead,theyhaveencouragedtheuseoflocalcurrencies.
BRICSCountries.Source:BRICS
Inlinewiththisbroaderstrategy,BRICShaslaunchedanewplatformcalledBRICSPay.Thisblockchain-basedsystemfunctionssimilarlytotheSWIFTnetwork.However,itisdesignedtofacilitatetransactionsbetweenBRICScountrieswithoutdependenceonWestern-controlledfinancialinstitutions.
Theplatformalsoaimstopromotetheuseofnationaldigitalcurrenciesforinvestmentandtrade.Accordingtothegroup,thismovewouldhelptobuildamoreresilientfinancialarchitecture.
“BRICSPaywillcomplementthecapabilitiesofexistingpaymentsystemsandmethods,enhancingsecurity,accelerating,andreducingthecostsofinternationaltransactions,”thegroupstated.
Meanwhile,theBRICSblochasbeenexpandingitsglobalinfluence,withrecentadditionstoitsranks,includingEgypt,Ethiopia,Iran,andtheUnitedArabEmirates.Morethan30othercountrieshaveshowninterestinformingclosertieswiththegroup,reflectingitsgrowingsignificanceinshapingglobaleconomictrends.
ThenextBRICSmeeting,scheduledtotakeplaceinKazan,willaddresspotentialfurtherexpansionandotherstrategicinitiatives.Withtheblocexpectedtodriveasignificantportionofglobaleconomicgrowthinthecomingyears,BRICSispositioningitselfasamajorforceinreshapingtheglobalfinanciallandscape.
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