State Duma Deputy Speaker Alexander Babakov has proposed creating a unified BRICS exchange that would use blockchain and cryptocurrencies for cross-blockchain transactions. Babakov stated that such an organization “would be the key to the economic sovereignty and independence of our countries,” while avoiding the use of third-party payment networks.

Proposed New BRICS Unified Exchange Could Use 'Blockchain and Cryptocurrencies'

BRICS, an international organization, is eyeing digital solutions to reduce dependence on third-party payment systems. State Duma Deputy Speaker Alexander Babakov proposed creating a single BRICS exchange where countries in the bloc would trade and pay for their products, including raw materials and goods.

Babakov told Ria Novosti that such an organization would benefit member states, allowing them to stop relying on currencies of rival nations like the US dollar. Babakov claimed that the exchange could allow member states to make payments in national currencies and “even develop their own payment mechanisms based on blockchain and a single virtual currency” and “strengthen the financial sovereignty of our countries.”

Talks of a common BRICS currency were renewed last year. However, the group has shifted to increasing the use of national currencies. The move has reported positive results, with payments in national currencies outpacing those in US dollars.

The BRICS bloc, which includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE), accounts for a quarter of the world's total trade volume and more than a third of its gross domestic product (GDP). This means that the hypothetical exchange would move a relevant portion of world trade, disrupting the use of the US dollar.

President Vladimir Putin revealed that BRICS has designed and implemented an independent payment system to create “conditions for efficient and independent servicing of all foreign trade.” This system could be part of the proposed exchange.

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