The BRICS bloc, of which Brazil is a member, is taking important steps to integrate digital assets into its operations.
This initiative builds on previous discussions about developing a blockchain-powered payment system for the group.
BRICS advances with digital assets
During the BRICS Business Forum on Saturday (18), Russian President Vladimir Putin announced that member countries have agreed to incorporate digital assets into their investment payment systems. Thus, the decision marks a significant change in the way the bloc plans to deal with cross-border transactions and investments.
Member countries will now be able to settle investment payments using cryptocurrencies like Bitcoin and stablecoins. Additionally, there are also ongoing discussions about launching a stablecoin backed by China’s Yuan. This move would further facilitate secure and efficient transactions within the bloc.
Putin stressed that the move would also benefit other developing nations, opening up new opportunities for economic growth.
We will discuss the use of digital currencies in investment developments by BRICS member states, and this will also benefit other developing and emerging economies with good prospects, Putin said.
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BRICS, which comprises Brazil, Russia, India, China and South Africa, has been making efforts to assert greater economic independence on the global stage. Over the past year, the group has focused on reducing its dependence on the US dollar for international trade. Instead, it has encouraged the use of local currencies.
BRICS countries. Source: BRICS
On blockchain, BRICS Pay could replace SWIFT
In line with this broader strategy, BRICS has launched a new platform called BRICS Pay. This blockchain-based system works in a similar way to the SWIFT network. However, it is designed to facilitate transactions between BRICS countries without reliance on Western-controlled financial institutions.
The platform also aims to promote the use of national digital currencies for investment and trade. According to the group, this measure would help build a more resilient financial architecture.
BRICS Pay will complement the capabilities of existing payment systems and methods, increasing security, speeding up and reducing costs of international transactions, the group said.
Furthermore, BRICS has been expanding its global influence, with recent additions to its ranks including Egypt, Ethiopia, Iran and the United Arab Emirates. More than 30 other countries have expressed interest in forming closer ties with the group, reflecting its growing importance in shaping global economic trends.
The next BRICS meeting, scheduled to take place in Kazan, will address possible further expansion and other strategic initiatives. Thus, the bloc is likely to drive a significant share of global economic growth in the coming years.
The article BRICS to adopt crypto for secure payments in investments was first seen on BeInCrypto Brazil.
