February 8, 2023

BRICS countries can create cryptocurrency as an alternative to the dollar

BRICS countries can create cryptocurrency as an alternative to the dollar

A single payment system can be created within the framework of BRICS, the head of the Russian Fund told reporters direct investment (RDIF), member of the BRICS business council, Kirill Dmitriev during the BRICS summit.

“Development of national segments of payment systemsand their sustainable integration are an important factor in the economic partnership between the BRICS countries in the face of increasing non-market risks of the global payment infrastructure ”, - quotes the words of Dmitriev Reuters.

The Union of Five Countries - Brazil, Russia, India, Chinaand South Africa, better known as BRICS, was thinking about creating its own payment system and digital currency. This should facilitate financial settlements between countries and reduce dependence on the dollar.

Payment system and cryptocurrency BRICS

The idea of ​​creating your own payment systemwas proposed by BRICS at today's forum in Brazil. The participating countries supported the idea, since such a system can not only increase the share of settlements in national currencies, but also provide a more stable investment climate between the countries. Here, most likely, this means circumventing US sanctions, which complicate both simple financial calculations and cash investments in other countries.

Another idea that has found BRICS support isown cryptocurrency. However, we are talking more about tokens, rather than a means of payment. It will be integrated into the payment system and will be available to all participating countries.

With the help of digital currency it will be possible to transferrights and obligations from one side to another, and in a matter of minutes. The advantage of using cryptocurrency, again, is that no third-party government can influence such transactions, even if countries participate in them under sanctions.

Besides all this, during the BRICS country forumdecided to create an alliance of artificial intelligence. Participants will be engaged in the development of this promising technology, and Russia will play one of the leading roles. In the future, the experience of the alliance will be able to use all countries, which in theory should accelerate the development of AI.

To summarize, one can make quite obviousoutput. The BRICS countries began to move away from the dollar more actively, while not forgetting to insure themselves against the case of countermeasures by the United States. Whether this will succeed is a question that we will not find an answer in the coming years, but the global trend indicates that the dollar is really losing ground.