Adopting crypto has been one of the key discussions among BRICS member states in a business forum held in Moscow on Friday.
The BRICS (Brаzil, Russiа, Indiа, Chinа, аnd South Africа) bloc seeks to reduce its reliance on Western financial systems by introducing an alternative payment system to the SWIFT payment network.
Digital Currency Adoption Urged
During the forum, Russian President Vladimir Putin urged BRICS members to adopt cryptocurrencies and other digital monies in their financial transactions to lessen their reliance on the US dollar.
Putin believes that BRICS and other developing countries could benefit from embracing digital currencies, saying that he would push for the economic bloc to explore this possibility.
JUST IN: BRICS to use digital currencies for investment developments. pic.twitter.com/i7u7JFsC55
— BRICS News (@BRICSinfo) October 18, 2024
He said that BRICS member nations will talk about using digital currencies in investment developments, adding that BRICS members are not the only ones who will benefit from crypto adoption but “other developing and emerging economies” as well.
However, he recognized that comprehensive regulations should be established first while highlighting the significance of crafting а robust framework governed by BRICS nations before dipping into crypto adoption.
Crypto Adoption On The Rise
The number of economies embracing digital monies such as cryptocurrencies has been increasing because it can be used to bypass traditional banking systems.
Others are also adopting the so-called Central Bank Digital Currencies (CBDCs), the digital versions of their nation’s currency. CBDCs are usually issued and regulated by their central bank.
Two BRICS member countries, Russia and China, have already explored the use of digital currencies.
Russia announced that it will start pilot testing its digital rouble in July next year. Under the pilot implementation, selected individuals and companies will participate in the experimental trial wherein they will make purchases using digital roubles.
On the other hand, China has made significant progress in this area through its Digital Currency Electronic Payment (DCEP). DCEP, also known as e-CNY, is a digital money initiated by the Chinese government and is currently operated by the Central Bank of China. It is China’s response to the public’s clamor for a modern payment solution.
At the end of 2021, about 261 million individual wallets were opened through the initiative and transactions worth 87.565 billion Chinese yuan were conducted.
BRICS Pay Launched
Aside from digital currencies, BRICS presented a new payment platform that will challenge the SWIFT financial system.
Member nations officially unveiled BRICS Pay, which is considered a milestone in revolutionizing financial transactions among the BRICS members. The blockchain platform would streamline cross-border transactions within the bloc, serving as an alternative to SWIFT and evading US sanctions.
Moreover, BRICS Pay reflects the aspirations of its bloc members to establish a self-reliant economic framework that is free from the control of traditional power structures.
Featured image from The Moscow Times, chart from TradingView