With the BRICS group of emerging economies developing its own indigenous financial structure, the question is can the grouping use cryptocurrencies for its payment system?
RT reported that at the BRICS Forum in St. Petersburg recently, Chairman of the Federation Council (Russian Senate) Valentina Matvienko discussed the potential for digital currency to become an important part of the union's common payment system. Central Bank Digital Currency (CBDC).
Earlier this month, Iran called for building a payment system to connect all Central Banks of BRICS members. Cryptocurrency can be a fairly simple way to do that.
According to Chairman of the Russian Federation Council Valentina Matvienko, this could be an important part of the developing project.
In March, it was announced that the BRICS bloc was working to create its own payment system. The move sent shockwaves through the geopolitical arena, mainly because of its impact on global finances. Now, the digitization of that payment system has attracted the attention of many people.
According to Ms. Matvienko, the BRICS bloc can use cryptocurrency for its payment system. Ms. Matvienko stated that the driving force for the BRICS common payment system is the de-dollarization plan, in particular the decision to eliminate “toxic currencies” weaponized by the West.
Ms. Matvienko noted that decentralized trading is at the heart of BRICS' common payment platform. None of the participants in the common system can limit the actions of another, she said. Furthermore, the common payment system also ensures avoidance of actions such as US sanctions issued in recent years.
In this case, she said, digital currencies of BRICS member Central Banks could be used. Usage rates will be tied to the value of the national currency. “This decision will be very interesting for the team. It will provide an important way to use national currencies in unilateral transactions. Furthermore, it will continue to de-dollarize digital assets,” Ms. Matvienko said.
BRICS' potential common payment system is expected to be one of many projects to help promote de-dollarization of the economy. BRICS is accelerating this project to strengthen the bloc's influence as well as that of the Global South countries.
