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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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The BRICS bloc officially embraced crypto for investments in a new bullish development on October 18.
The announcement came during the ongoing BRICS Business Forum in Moscow, where Russian President Vladimir Putin revealed the decision, calling it a potential game-changer for the alliance.
The news comes just ahead of the highly anticipated BRICS Summit 2024, set to occur next week. At the summit, the bloc is expected to announce several new economic policies, including the blockchain-based BRICS Pay platform recently introduced to attendees.
Putin Calls for BRICS Commitment to Digital Currencies Like Crypto and Local Payments at Forum
President Putin stressed the importance of digital currencies for both BRICS nations and other emerging economies.
“We will discuss the use of digital currencies in investment developments by BRICS member states, and this will also benefit other developing and emerging economies with good prospects,” he said.
He also noted that the bloc would develop a toolkit to ensure proper regulation under the supervision of BRICS institutions.
The BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has been focusing on expanding its economic presence.
Over the past year, the bloc has worked to reduce its reliance on the US dollar in international trade, promoting the use of local currencies instead.
This decision follows Russia’s recent reversal of its ban on digital assets for international payments, opening the door for this bold new direction.
Along with digital currency adoption, BRICS is set to launch the BRICS Pay platform, a blockchain-based system designed to facilitate cross-border transactions within the alliance.
The platform, introduced at the forum, is viewed as a crucial tool for reducing reliance on Western financial systems. Russia and China,
In particular, it has pushed for its adoption to bypass US sanctions and decrease dependence on the dollar in global trade.
Russia’s Digital Strategy: Crypto Payments, the Digital Ruble, and the Future of BRICS
Putin also noted that BRICS members have already worked on a SWIFT-like financial messaging system and used national digital currencies to finance high-growth projects. These efforts are part of a long-term vision to strengthen financial independence and increase trade within the bloc.
In addition to these technological advancements, Putin addressed the ongoing expansion of BRICS. He welcomed new members, including Egypt, Ethiopia, Iran, and the UAE, and mentioned that over 30 other countries have expressed interest in joining the bloc. The upcoming BRICS Summit in Kazan will further explore potential new members.
Putin expressed confidence in BRICS’ ability to drive global economic growth in the coming years, thanks to the bloc’s large and rapidly growing economies compared to the West.
He also outlined Russia’s contributions to BRICS, including new financial initiatives such as a joint cross-border payments system and the creation of a reinsurance company.
Additionally, Putin called on the New Development Bank, the multilateral institution of BRICS, to invest in key areas like technology, infrastructure, e-commerce, and artificial intelligence, especially in the Global South.
Russia has taken major steps to implement its digital currency strategy, especially in light of Western sanctions.
In August, Putin signed laws that legalized crypto mining and allowed international crypto payments, enabling Russian businesses to use digital currencies for cross-border payments. Russia’s central bank is also testing the digital ruble, with a full launch expected in 2025.
