The BRICS coalition is actively pursuing strategies to counterbalance the political and financial dominance of Western powers by bolstering ties among emerging economies. In a concerted effort to deepen cooperation and reduce reliance on the US dollar, BRICS has unveiled plans for a blockchain-based payment system.
According to reports from the Russian news agency TASS, BRICS nations are in the process of developing a blockchain-powered payment system aimed at diminishing the use of the dollar within member countries. Kremlin advisor Yury Ushakov emphasised that this system would leverage digital blockchain technology to facilitate cost-effective and politically neutral transactions for governments and ordinary citizens alike.
The primary objective of this blockchain payment network, as outlined by Ushakov, is to elevate the influence of BRICS nations within the global financial framework by promoting settlements in national currencies and reinforcing correspondent banking channels. Such measures are intended to secure a greater share of international transactions beyond the sphere of the dollar’s influence.
The details of the payment system, including whether BRICS will create its own blockchain or adopt an existing platform, have not been disclosed by the Kremlin.
This blockchain-based initiative represents a logical progression from the BRICS Contingent Reserve Arrangement (CRA), which was established in 2014 during the sixth BRICS summit in Fortaleza, Brazil. The CRA was devised to provide liquidity and support for balancing payments among member nations.
The arrangement saw member nations collectively committing $100 billion to the CRA, with China contributing $41 billion and South Africa $5 billion, among others. While the CRA aims to strengthen the global financial safety net, its broader purpose is to reduce dependency on US dollar-denominated assets and institutions like the IMF, which are often influenced by Western powers.