BRICS Officially Adopts Cryptocurrencies for Investments
BRICS has made it official to adopt cryptocurrencies as a tool for investments, marking a new phase in the economic agenda of the bloc. This was announced by Russian President Vladimir Putin on October 18 during the BRICS Business Forum in Moscow. He pinpointed that this could reshape the economic dynamics not just within the BRICS ecosystem but among other developing nations in general.
Putin called the adoption of cryptocurrencies a turning point for BRICS-a group that includes Brazil, Russia, India, China, and South Africa. A decision that now opens the doors for more financial cooperation and expansion within the bloc, while at the same time pressing for independence from the traditional financial systems led by the West.
BRICS Pay: Blockchain platform for cross-border payments
In conjunction with the announcement on the adoption of cryptocurrency, Putin also proposed the BRICS Pay blockchain-based system intended to serve cross-border settlements within the association. It is perceived as a strategic tool for weakening the dependence of BRICS on Western-dominated financial infrastructure and the US dollar.
The BRICS Pay platform will also be able to conduct seamless transactions between member nations and is seen to be instrumental in bypassing sanctions against the noted nations, especially Russia and China, who have been at the forefront of pushing for this shift as a counterbalance against Western economic pressure.
Increased Financial Sovereignty with Digital Currencies
Putin again emphasized the role of digital currencies for engendering economic prosperity and financial independence for the members of BRICS. He added that this innovation would be served with more trade use of local currencies and, therefore, reduced dependence on foreign financial infrastructures. The adoption of cryptocurrencies comes as Russia has been increasingly integrating digital assets into its financial system, after the legalization of crypto payments for international settlements.
This is also in line with Russia’s wider digital strategy testing the digital ruble as one of the possible ways for cross-border settlements in the future, fully expected to begin by 2025.
Emerging BRICS and Its Global Economic Influence
Besides the use of cryptocurrency, Putin invited new members to the BRICS group, which included Egypt, Iran, and the UAE. More than 30 other countries have also shown their interest in joining the bloc as well. And the forthcoming BRICS Summit, scheduled next week in Kazan, is expected to further discuss the expansion and reveal more economic plans.
It was an expanding membership and the increased use of modern financial instruments like cryptocurrency and blockchain-based platforms that are making BRICS heed the call for its expanded influence on the global stage. Putin also made confident statements about BRICS shaping the course of world economic policies in the future, especially in the Global South.
