Brazil will push hard for cryptocurrency implementation in BRICS trade.
Brazil’s agenda as president of the BRICS bloc will include an odd topic: cryptocurrency. Brazilian authorities are ready to submit suggestions to the organisation to evaluate cryptocurrencies as a solution for international settlements both within and outside the bloc.
According to the local magazine “O Globo,” this topic will be a priority now that Brazil has taken over as President of BRICS from Russia. The plan would support the need to speed up financial transactions between group members and lessen reliance on foreign currencies such as the US dollar.
While the concept of a BRICS shared currency has been raised previously, with economists such as Jim Rickards predicting that it would use gold to destroy the dollar, it has not been proposed. Instead, BRICS is working on developing an efficient payment system that will make use of digital national currencies or even stablecoins, which are already utilised in international settlements, albeit informally.
President Donald Trump rejected the BRICS currency idea, threatening a 100% tariff regime if the organisation abandoned the US dollar in favour of a new currency and preserving the dollar’s status as the world’s trading currency.
Brazil might introduce a system similar to Pix, which uses many networks and fiat money. Nonetheless, this raises concerns regarding the system’s sovereignty and independence, as fiat currencies may be subject to differing regulatory norms.
Russian authorities have acknowledged that BRICS is prioritising this issue and will have talks to identify the best course of action. Last month, Russian Foreign Minister Sergey Lavrov emphasised that President Luis Inacio Lula Da Silva had taken the initiative in this regard, looking into the establishment of a so-called transborder payment initiative, a reinsurance company, and the BRICS Clear settlement and depositary infrastructure.