BRICS, the group of nations that includes Egypt, Ethiopia, and South Africa is set to establish an independent payment system built upon digital currencies and blockchain technology, according to Kremlin aide, Yury Ushakov, in an interview with TASS.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” he said.
Ushakov further highlighted that the specific objective for 2024 is to enhance the influence of BRICS in the global monetary and financial system.
He emphasized that the leaders, as outlined in the 2023 Johannesburg Declaration, have prioritized the focus of BRICS countries on expanding settlements in national currencies and bolstering correspondent banking networks to ensure the security of international transactions.
BRICS | BRICS Countries Declare to Enhance Trade Settlement Using Local Currencies
The Johanessburg II declaration stated: “We task our Finance Ministers and/or Central Bank Governors, as appropriate, to consider the issue of local currencies, payment instruments and platforms… pic.twitter.com/ZU1p1KHtWt
— BitKE (@BitcoinKE) August 31, 2023
The direction taken to prioritize local currencies came as some expected that BRICS would launch a digital currency in Johannesburg. Nonetheless, the leaders indicated they are motivated by the continued use of the dollar in an abusive way.
“We are concerned that global financial and payment systems are increasingly being used as instruments of geopolitical contestation,” said Cyril Ramaphosa, President, South Africa.
“Global economic recovery relies on predictable global payment systems and the smooth operating of banking, supply chains, trade, tourism as well as financial flows.”
For the most part, BRICS included 5 countries (Brazil, Russia, India, China, and South Africa) but in 2023, Ethiopia, Egypt, Argentina, Iran, Saudi Arabia, and UAE were invited to join the economic bloc, before their eventual admission on January 1, 2024.
BRICS | Ethiopia and Egypt Among 6 New Nations Joining BRICS Starting January 2024
Broadening the scope of the coalition is a component of BRICS strategy to establish influence and restructure worldwide governance into a 'multipolar' global arrangement that prioritizes the… pic.twitter.com/JpDt44pJjt
— BitKE (@BitcoinKE) August 25, 2023
Over 40 nations had shown their desire to become part of BRICS, and 23 had officially submitted applications for membership to the consortium.
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Aside from the 22 countries that had formally asked to join, there is an equal number of countries that have informally expressed interest in becoming BRICS… pic.twitter.com/JHTiGP0lH2
— BitKE (@BitcoinKE) July 23, 2023
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