BRICS member Russia on Tuesday announced the creation of a new blockchain-based payment system. Blockchain and cryptocurrency-based payment mechanisms will become independent systems for trade settlement. The new BRICS payment system will position itself as an alternative to the US dollar.
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This payment system aims to be friendly to governments, businesses, and even the general public. Therefore, if this system is successful, a wide variety of classes, from governments to ordinary people, could benefit greatly.
Russian diplomat Yuri Ushakov confirmed that the new BRICS payment mechanism will introduce cutting-edge technology to incorporate digital assets and cryptocurrencies on the blockchain.
Also read: BRICS: China expands into Western territories, buys gold companies for cash
BRICS could introduce a payment system that would allow its members and other developing countries to settle cross-border transactions through new mechanisms to compete with the US dollar. This development will increase pressure on the US dollar and reduce supply and demand in global markets. Read here to find out how many sectors of the US will be affected if the BRICS ditch the dollar for trade.
BRICS: A new payment system based on blockchain
Mr. Ushakov emphasized that the specific task for BRICS this year is to increase their global presence in the financial system. This payment system would be the first step in putting the partnership on a new trajectory for global domination.
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“We believe that building an independent BRICS payment system, based on digital technologies and cutting-edge tools such as blockchain, is an important goal for the future. It's about making sure it's not only convenient for people and businesses, but also cost-effective and free from politics.” he said to Tas.
However, Ushakov did not provide a tentative timeline for the launch of the new BRICS payment system. The new mechanism is likely to be unveiled at the 16th summit meeting in October this year.
