The five-nation BRICS group comprising Brazil, Russia, India, China, and South Africa will work on creating a payment system based on blockchain and digital technologies, a report by Russian news agency TASS said.
BRICS officials emphasised the importance of establishing an autonomous BRICS payment system, leveraging cutting-edge tools like digital technologies and blockchain. The priority is to ensure convenience for governments, individuals, and businesses, along with cost-effectiveness and non-political influences.
The effort is part of a specific task for 2024 to increase the role of BRICS in the international monetary system. For some time, the BRICS grouping has been making efforts to reduce its reliance on US dollars in settlement, also known as de-dollarisation.
Work will continue to develop the Contingent Reserve Arrangement, primarily regarding the use of currencies different from the US dollar, further added BRICS’ representatives.
TASS also reported that Russia’s Finance Ministry, the Bank of Russia, and BRICS partners will create the BRICS Bridge multisided payment platform in an effort to improve the global monetary system.
Also in February 2024, the Chair of the Financial Stability Board, which keeps an eye on the global financial system, wrote to finance ministers from the Group of 20 (G20) countries that crypto assets, tokenization, and artificial intelligence (AI) remain priorities.
In 2019, BRICS countries have started collaborating on ‘BRICS Pay,’ a single payment system aiming to unify national payment systems through a digital wallet accessible across members.
This initiative aims to reduce reliance on global payment systems, particularly amidst rising geopolitical tensions. Coordination and testing of the platform are imminent, highlighting BRICS' significance as a platform for member states and developing nations alike.
In 2016, BRICS nations prioritised collaboration on ecommerce and intellectual property rights (IPR), aiming to expedite the elimination of non-tariff barriers to enhance trade. Additionally, some developed nations advocate for the inclusion of new topics such as ecommerce and government procurement at the WTO.
It is believed that BRICS cooperation in ecommerce could bolster multilateral institutions like the WTO, IMF, and UN systems. The creation of the New Development Bank underscored the necessity for reforms in the global financial system towards establishing new rules.
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