BRICS Unveils Plans for Digital Currencies, Blockchain Payment System to Counter Dollar Dominance

• The BRICS organization has announced the development of a crypto and blockchain-independent payment system.
• The system is designed to serve to align the organization to its Contingent Reserve Arrangement (CRA) framework.

The independent organization set up to boost economic cooperation between member groups made up of Brazil, Russia, India, and China and a handful of other countries is making a major settlement into the blockchain industry.

According to a recent announcement, BRICS has developed a payment platform centered around cryptocurrencies and blockchain. The announcement further noted that the payment system is independent.

Speaking to the Russian News Agency TASS, Yury Ushakov, the Kremlin aide to Russia, expanded on the new development. Ushakov explained that the decision to create the payment system is an attempt to further its commitment to the organization’s movement. He noted that the move is in line with the BRICS Contingent Reserve Arrangement (CRA) framework.

Established in 2015 by the BRICS countries, the BRICS Contingent Reserve Arrangement (CRA) is a system designed to protect the organization from a global liquidity crisis that may arise in the long term. The framework was designed to offer liquidity and precautionary tools. The CRA was mainly created in response to the potential short-term balance of payments pressures.

Increasing BRICS role in monetary and financial systems internationally is at the core of this year’s roadmap

Yury Ushakov went on to highlight the motive behind the organization’s actions, asserting that convenience is at the core of the payment system. As such, providing ease to collective users including commercial organizations and regular citizens amongst others is essential to the organization.

In addition, he explained that decentralization for BRICS is significant for the future as the system will prioritize crypto and blockchains.

“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,” Ushakov asserted.

The announcement marked a notable milestone for BRICS, which has occasionally faced pushback from Western governments and financial authorities. The move also strengthens the organization’s commitment to independence and alternative payment systems.

This year, Ushakov revealed that the goal of the firm is to increase the organization’s role in the monetary and financial system at an international scale. The tone for the year, as he stated, was set by leaders in the 2023 Johannesburg Declaration.

The leaders explained that increasing settlements in national currencies, along with expanding on corresponding banking networks to strengthen international transactions is at the core of this year’s roadmap. As the Kremlin aide disclosed;

“Work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies different from the US dollar.”