The BRICS alliance has taken a significant step towards financial independence by officially announcing its blockchain-based payment system. Russian President Vladimir Putin revealed new details about the project, which is expected to play a crucial role in the bloc’s de-dollarization efforts.
The BRICS payment system is poised to revolutionize international trade by providing a more efficient and independent alternative to traditional banking systems. With its blockchain technology, the system will enable seamless transactions between BRICS nations, reducing reliance on the US dollar.
Key Details and Launch Timeline
While specific details about the payment system are still emerging, it is expected to be launched at the upcoming BRICS summit, scheduled to take place next month. The event will focus on the bloc’s de-dollarization agenda and further expansion, following the addition of three new members in 2023.
Overcoming Challenges
President Putin acknowledged the challenges faced by BRICS nations in international trade due to sanctions and limited access to SWIFT. However, he emphasized that the new payment system would provide a solution by enabling effective and independent servicing of foreign trade.
Shift Towards National Currencies
The BRICS payment system aligns with the bloc’s broader goal of promoting the use of national currencies in international transactions. By facilitating easier settlements in local currencies, the system will contribute to a more multipolar global financial landscape.
President Putin highlighted the strong interest from BRICS partners in transitioning away from the US dollar. The introduction of the new payment system is expected to have a significant impact on this shift, making it easier for BRICS nations to conduct trade without relying on foreign currencies.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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