At the 16th BRICS Annual Summit held in Kazan, Russia, several key members discussed the role of cryptocurrencies in de-dollarization. The presidents of Russia, China, and Iran all emphasized the need for new digital platforms.
At the core of this de-dollarization effort is BRICS Pay, a payment solutions platform based on blockchain technology and CBDC.
BRICS Summit 2024
The 16th annual BRICS Summit officially opened in Kazan, Russia, with one topic taking center stage: de-dollarization. A few days ago at the BRICS Business Forum, Russian President Vladimir Putin discussed the use of crypto assets and central bank digital currencies (CBDCs) for secure payments. Now, the topic has expanded further.
Chinese President Xi Jinping said, “There is an urgent need to reform the international financial structure, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power.'' said.
Read more: Digital Rupee (e-Rupee): A comprehensive guide to India’s CBDC
At the heart of this reform is the nascent BRICS Pay system. The proposed model uses blockchain technology and CBDC to facilitate payment options.
Although the system is not yet operational, BRICS members have long discussed it as a de-dollarization strategy. A mockup of a new currency that could potentially be used in the system was also presented at the summit.
In other words, the discussion goes beyond hypotheses. The BRICS Business Council's annual report clearly discusses the urgency of perfecting these alternative economic platforms.
Some delegates advocated a system based on a CBDC, such as a digital renminbi. This reflects El Salvador's main reason for making Bitcoin its legal tender: greater economic independence.
Read more: Cryptocurrency regulation: What are the advantages and disadvantages?
As Matthew Sigel, VanEck's head of digital asset research, reported, CBDCs are not the only assets under discussion. Russian lawmakers introduced the possibility of using Bitcoin and other assets to pay for imported goods, also bypassing dollar hegemony. Cryptocurrency has always been at the forefront of discussions regarding BRICS’ new economic infrastructure.
Although BRICS is considered an “informal club” rather than a concrete force, prominent members have joined the de-dollarization plan. For example, Iranian President Masoud Pezeshkian proposed an “international mobile payment system,” “shared e-commerce platform,” and other similar digital solutions, according to Iranian state media network IRNA.
Among China, Russia, Iran, and a number of other member states, the BRICS summit could garner enough cooperation and approval to advance de-dollarization efforts. Representatives from the world's major economies are all in attendance to discuss blockchain and cryptocurrency solutions.
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to fair and transparent reporting. This news article is intended to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to independently verify their facts and consult a professional. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.
