Brazil to Propose Support for Blockchain Payment System for Brics: Report

Brazil is reported work on a proposal to create a blockchain-based payment system for internal use by the brics economic block. The group has been discusing ways to Reduce Reliance on the us dollar for internal cross-border transactions since 2024. Group. Egypt, Ethiopia, Iran, and the UAE Joined The Group Last Year, and Brazil Assume the BRICS President on January 1.

The country is set to host the annual brics summit in Rio de janeiro in early july. During the event, brazil will host discusations on the topic of Blockchain Based Payments, According to a Report In Local Publication O Globo that Cites Government Sources Familiar with the Matter.

If implemented, this system would provide a Secure, Transparent, and Permanent Financial Infrastructure Designed for the BRICS Group. The group Reportedly Believes That System Bet Significly Shorten The Transaction Processing Window Between Member Countries for Way Cheaper costs. As of now, it remains unclear if the brics will introduce a new crypto token to process settlements via this system or use existing stablecoins and cbdcs.

Russia proposed this system last March to curb the use of the us dollar for internal settlements. A number of factors, like Consective Interest Rate Hikes from the us after the covid-19 Pandemic and Several Economic Sanctions Against Russia and China Prompted the BRICS Nations to Consider the Idea. Yuryh ushakov, an advisor to president putin said At the time that this system should be curtail us-initiated Financial Politics and Simplife Cross-Border Transactions Among the BRICS Nations.

Us President Donald Trump has criticized The Brics Block for Trying to Sideline The Us Dollar. The US President said He would intensify tariff rates by a 100 percent against the brics nations.

According to reports, Brazil will is attempting to support the blockchain payment platform, without instigating the us. Rio Times said Brazil will pitch the creation of this payment system as a project to simplify cross-border settlements, rather than as a way to replace any currency.

The BRICS Group, Meanwhile, Continues to Grow. On January 1, The Group added Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria as ‘Partner Nations’. Around 30 other countries have shown an interest in joining the group.