The BRICS countries support the idea of a single digital currency

The BRICS countries support the idea of a single digital currency

November 15, 2019 by
Members of the international group of BRICS countries, which includes Russia, China, India, Brazil and South Africa, plan to create their own cryptocurrency for settlements between the countries.
(Osaka - Japão, 28/06/2019) Presidente da República, Jair Bolsonaro, durante foto de família dos Líderes dos BRICS.
Foto: Alan Santos / PR

At the last BRICS Summit in Brazil, BRICS members talked about ways to reduce their dependence on the U.S. dollar and reduce the share of payments in U.S. dollars.

Among other opportunities, the participants discussed the creation of their own cryptocurrency and a single payment system for mutual settlements.

Details of the proposed payment system are still unknown, but according to Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF), the global payment infrastructure is becoming increasingly risky. This stimulates the development of alternative payment systems for the BRICS.

Recall that China strives to be the first to launch the central bank’s digital currency (CBDC).

The Central Bank of Russia has stated that there is no obvious need for a national cryptocurrency, and that the cryptocurrency does not pose a global threat to the country’s financial stability.

If the BRICS succeeds in implementing its plans to create a digital currency for its payments, this will be another positive factor for the cryptographic industry and a confirmation of the advantages of digital assets over fiat currencies.

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