The adoption of crypto was one of the key discussions among BRICS member countries at a business forum in Moscow on Friday.
The BRICS bloc (Brazil, Russia, India, China, and South Africa) wants to reduce its dependence on Western financial systems by introducing another payment system in the SWIFT payment network.
Digital Currency Adoption Is Encouraged
During the forum, Russian President Vladimir Putin urged BRICS members to use cryptocurrencies and other digital currencies in their financial transactions to reduce their dependence on the US dollar.
Putin believes BRICS and other developing countries could benefit from adopting digital currencies, saying he will push for the economic bloc to explore the possibility.
JUST IN: BRICS to use digital currencies for investment development. pic.twitter.com/i7u7JFsC55
— BRICS News (@BRICSinfo) October 18, 2024
He said BRICS member countries will talk about using digital currency for investment development, adding that not only BRICS members will benefit from the discovery of crypto but also “other developing countries and emerging economies”.
However, he noted that comprehensive regulations should be established first while highlighting the importance of creating a strong framework governed by the BRICS countries before entering into crypto adoption.
Crypto Discovery on the Rise
The number of economies that accept digital currencies such as cryptocurrencies is increasing because they can be used to bypass traditional banking systems.
Others also use so-called Central Bank Digital Currencies (CBDCs), 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 currency.
Russia has announced that it will begin testing its digital ruble in July next year. Under the pilot initiative, selected individuals and companies will participate in a pilot trial where they will make purchases using digital rubles.
On the other hand, China has made significant progress in this area through the use of Digital Currency Electronic Payment (DCEP). DCEP, also known as CNY, is a digital currency created by the Chinese government and currently operated by the Central Bank of China. It is China’s answer to the public’s cry for a modern payment solution.
By the end of 2021, about 261 million individual wallets were opened through this initiative and transactions worth 87.565 billion Chinese yuan were made.
BRICS Pay Launched
Besides digital currencies, BRICS has launched a new payment platform that will challenge the SWIFT financial system.
The member countries have officially launched BRICS Pay, which is considered a milestone in the transformation of financial transactions among BRICS members. The blockchain platform will facilitate cross-border transactions within the bloc, act as an alternative to SWIFT and avoid US sanctions.
In addition, BRICS Pay reflects the aspirations of its members to establish a self-reliant economic framework that is not controlled by traditional power structures.
Featured image from The Moscow Timeschart from TradingView