The BRICS group of nations is reportedly set to collaborate on the development of a payment system that utilizes blockchain technology.
BRICS is an acronym representing the alliance of five major emerging economies: Brazil, Russia, India, China, and South Africa. These nations joined forces with the aim of challenging the dominance of Western economic powers and institutions like the World Bank. BRICS seeks to foster greater cooperation between its members in areas such as trade, infrastructure development, and technology. Additionally, they explore the potential for alternative financial systems, including development banks and a reserve currency, to reduce dependence on the US dollar.
BRICS nations together hold significant global influence. Their large populations, sizable economies, and vast natural resources give them increasing sway on the international stage. They see BRICS as a way to amplify their voices and advocate for their interests outside traditional Western-led organizations. However, BRICS nations face challenges, including internal differences in their political systems and regional conflicts, which can sometimes hinder their ability to act as a unified force. Despite ambitious goals, the overall impact of BRICS on reshaping the global order remains to be fully seen.
TASS, or the Telegraph Agency of the Soviet Union, is Russia’s primary state-owned news agency. Founded in 1904, its history runs deep, reflecting the shifting tides of Russian politics. TASS operates a sprawling network of correspondents both within Russia and abroad, providing news in text, photo, and video formats across various languages. Although its content is often seen as a mouthpiece for the Russian government, conveying official viewpoints and positions, international media frequently relies on TASS for reporting on news within Russia and neighboring regions.
The BRICS alliance is set to work on creating an independent payment system that will utilize digital currencies and blockchain technology, according to a recent interview with Kremlin aide Yury Ushakov, as reported earlier today by the Russian news agency TASS.
In the interview, Ushakov emphasized the importance of establishing an independent BRICS payment system, stating, “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. 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 development of this payment system is apparently part of the BRICS nations’ specific task for this year, which aims to increase the group’s role in the international monetary and financial system. Ushakov recalled that in the 2023 Johannesburg Declaration, BRICS leaders set the focus on increasing settlements in national currencies and strengthening correspondent banking networks to secure international transactions.
Furthermore, TASS reports that Ushakov pointed out that “Work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies different from the US dollar.” This statement highlights the BRICS nations’ ongoing efforts to reduce their reliance on the US dollar in international trade and financial transactions.
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