Crypto adoption was one of the key discussions among BRICS member states at a business forum in Moscow on Friday.
The BRICS bloc (Brazil, Russia, India, China and South Africa) seeks to reduce its dependence on Western financial systems by introducing an alternative payment system to the SWIFT payment network.
Urgent adoption of digital currency
During the forum, Russian President Vladimir Putin urged BRICS members to adopt cryptocurrencies and other digital currencies in their financial transactions to reduce their dependence on the US dollar.
Putin believes that BRICS and other developing countries could benefit from the adoption of digital currencies, saying he would push for the economic bloc to explore the possibility.
JUST IN: BRICS will use digital currencies for investment development. pic.twitter.com/i7u7JFsC55
– BRICS News (@BRICSinfo) October 18, 2024
He said BRICS member countries would talk about the use of digital currencies in developing investments, adding that BRICS members are not the only ones to benefit from crypto adoption, but also “others developing and emerging economies.
However, he acknowledged that comprehensive regulations should first be established, while emphasizing the importance of developing a robust framework governed by BRICS countries before embarking on crypto adoption.
Crypto Adoption on the Rise
The number of economies adopting digital currencies such as cryptocurrencies is increasing as they can be used to bypass traditional banking systems.
Others are also adopting central bank digital currencies (CBDCs), digital versions of their country’s currency. CBDCs are generally issued and regulated by their central bank.
Two BRICS member countries, Russia and China, have already explored the use of digital currencies.
Russia has announced that it will begin testing its digital ruble in July next year. As part of the pilot implementation, selected individuals and companies will participate in an experimental trial during which they will make purchases using digital rubles.
On the other hand, China has made significant progress in this area through its Digital Currency Electronic Payment (DCEP). DCEP, also known as e-CNY, is a digital currency launched by the Chinese government and currently managed by the Central Bank of China. This is China’s response to public demand for a modern payment solution.
By the end of 2021, approximately 261 million individual wallets were opened through this initiative and transactions worth 87.565 billion Chinese yuan were carried out.
BRICS Pay is launched
In addition to digital currencies, BRICS presented a new payment platform that will challenge the SWIFT financial system.
Member countries officially unveiled BRICS Pay, which is considered a milestone in revolutionizing financial transactions among BRICS members. The blockchain platform would streamline cross-border transactions within the bloc, serving as an alternative to SWIFT and avoiding U.S. sanctions.
Furthermore, BRICS Pay reflects the aspirations of its members to establish an autonomous economic framework, free from the control of traditional power structures.
Featured image from Moscow TimesTradingView chart
