BRICS Nations Look Into Building A Digital Assets Platform To Curb The Dollar’s Dominance

BRICS, which consists of Brazil, Russia, India, China, and South Africa, is considering forming a digital assets platform to combat the global currency and further utilize several currencies in foreign trade. This goal was stated by Russian President Vladimir Putin, who underlined the need to limit the influence of western finance and promote an advanced technology market for the countries in the block.

Launch of BRICS Pay and a System Based on Blockchain Technology

The cornerstone of this idea is BRICS Pay, an envisioned digital system which will employ the use of blockchain technology in the making of payments for goods and services across borders. The said system will allow payments via non-traditional currencies such as crypto currencies, and Central Banks Digital Currencies (CBDC). It will enable the members of the BRICS nations and the new entrants for example, the Iran, Egypt, Ethiopia and the UAE, the ability to make global payments processes without third parties, hence cutting down costs of transactions and enhancing the speed of the payment processes.

In addition to BRICS Pay, the same group is also working on a financial messaging system akin to SWIFT to provide a secure transfer of information between financial institutions without the use of any Western-owned networks.

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De-Dollarisation Efforts and Strategic Financial Autonomy

The conversations with the members of the BRICS block also exhibit the emerging trends of “de-coupling” on which which gives economic concerns and the political atmosphere prevail. The outreach of the borders with countries like Russia and China as well as the recent turmoil in the dollar make it crucial to have a financial structure that is if possible better. BRICS strives to develop economic systems that would allow its members to preserve their sovereignty and fully explore their potential while reducing their dependence on the American dollar by means of digital assets and through decentralization.