October 28, 2024
By Our Correspondent
At the sixteenth annual BRICS Summit held in Kazan, Russia, prominent leaders engaged in discussions regarding the role of cryptocurrency in the process of de-dollarization. The Presidents of Russia, China, and Iran emphasized the necessity for the development of new digital platforms. Central to this de-dollarization initiative is BRICS Pay, a payment solution platform that leverages blockchain technology and central bank digital currencies (CBDCs). The summit has officially commenced, with de-dollarization emerging as a key topic of focus.
During the preceding BRICS Business Forum, Russian President Vladimir Putin highlighted the potential of utilizing crypto assets and CBDCs for secure transactions. This discussion has since expanded: “There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power,” stated Chinese President Xi Jinping.
The foundation of this reform is the emerging BRICS Pay system, which aims to utilize blockchain technology and CBDCs to enhance payment options. Although the system is not yet operational, BRICS members have been deliberating its implementation as a strategy for de-dollarization. A conceptual design for a potential new currency associated with this system was also showcased at the Summit.
In essence, the discussions have progressed beyond mere speculation. The annual report from the BRICS Business Council explicitly addressed the pressing need to finalize these alternative economic platforms. Some representatives advocated for a system utilizing CBDCs, such as the digital yuan, reflecting a similar rationale to El Salvador’s decision to adopt Bitcoin as legal tender, aimed at achieving greater economic autonomy.
As reported by Matthew Sigel, Head of Digital Assets Research at VanEck, CBDCs are not the sole assets under consideration. Russian lawmakers have proposed the possibility of employing Bitcoin and other cryptocurrencies for import payments, thereby circumventing dollar dominance. Cryptocurrencies remain a central topic in the ongoing discourse surrounding BRICS’ new economic framework.
BRICS has often been characterized as “an informal club” rather than a definitive entity; however, key members have embraced the de-dollarization initiative. As reported by the Iranian state media outlet IRNA, Iranian President Masoud Pezeshkian has suggested the implementation of “international mobile payment systems,” “a shared e-commerce platform,” and various other digital solutions.
With the participation of China, Russia, Iran, and several other member nations, the BRICS Summit has the potential to foster sufficient collaboration and consensus to advance de-dollarization efforts. Delegates from the world’s leading economies have convened to explore blockchain and cryptocurrency solutions.