- A Kremlin aide just unveiled plans for the creation of a BRICS payment system.
- The platform will be powered by blockchain and it will offer cryptocurrency support.
- The US government is worried that the developments could further undermine its sanctions against hostile nations.
A Blockchain- and Crypto-Based BRICS Payment System
Developments within the BRICS could further add to the economic woes of the US. Recently, Russia announced that the collective plans to create an independent payment system based on blockchain and cryptocurrency. The platform will be tailored for trade settlements by the group as an obvious attempt to break away from the US dollar and finally end its dominance in global trades and foreign exchanges.
The country’s BRICS representative, Yuri Ushakov, confirmed that the new payments network will utilize the blockchain and it will be compatible with digital assets like cryptocurrencies. There was no mention yet of the particular cryptos they will be supporting or the prospect of using BRICS’ own digital currency.
“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,” Usharov said in an interview with Tass Russian News Agency. “The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics.”
The Kremlin representative didn’t state the timeline for the project’s launch but more details about it are expected to be discussed at the next BRICS summit in Kazan by October.
US Worried About the BRICS’ De-Dollarization Progress
Russia has long hinted that it has been ironing out the establishment of a “digital economy” with its allies. Minister of the Moscow City Government and chairman of the Board of the Business Council for Cooperation with India, Sergey Cheremin, laid down the concept during the Smart Cities India Expo program last January.
Of course, this didn’t sit well with US politicians. Early on, Senator Marco Rubio (R-Florida) aired his concerns about the growing influence and composition of the BRICS. He pointed out that it could undermine the West’s economic sanctions on nations hostile to the US and its allies.
Since Russia took over as chair of the alliance, it has grown its membership from the original five to ten countries. It claimed that 40 other countries have expressed their intention to join BRICS.
Besides the Russian Federation, other members of the collective are presently under sanctions by the US, including Iran, China, and Ethiopia.