The BRICS nations plan to launch a new blockchain system for making payments outside the dollar system

BRICS is aiming for blockchain

According to what was reported by TASS (Russian news agency), the BRICS nations (Brazil, Russia, India, China, South Africa and, from 2024, Egypt, Ethiopia, Iran and the United Arab Emirates) are developing a new payment system based on blockchain. All this, to combat the dominance of the dollar internationally and within the group's member countries.

According to Yury Ushakov, representative of the Kremlin, the new payment system would exploit blockchain technology with the aim of increasing the influence of BRICS in the global financial system, first of all by exiting the sphere of influence of the dollar and strengthening national currencies.

Details about the project, however, have not been exposed, nor whether this blockchain will be new or chosen from existing ones.

What is known is that the project follows the directives of the Contingent Reserve Arrangement (CRA), an agreement between the countries in question to encourage liquidity exchanges in terms of financial support.

BRICS vs USD

From this perspective, the BRICS have already allocated 100 billion dollars in a fund, with the aim of avoiding dependence (judged excessive) on assets denominated in US dollars and institutions where Western powers are predominant (e.g. IMF).

The topic of a single currency used by member countries has already emerged in the past, however there will be many obstacles, given the differences between the various countries (no longer just emerging economies, but also high-income countries).

In all of this, blockchain would represent an even further step towards finding an alternative to the fiat system. However, it is unlikely that the project will be implemented in the short term, if only due to the lack of details on the merits of the project.