Brazil is prioritizing cryptocurrency and blockchain payments for BRICS trade in 2024, aiming to reduce reliance on the U.S. dollar.
Brazil Pushes Cryptocurrency for BRICS Trade Under Its 2024 Presidency
Brazil is prioritizing cryptocurrency and blockchain payment systems as part of its leadership agenda for BRICS in 2024. The South American nation aims to streamline international trade settlements while reducing dependency on the U.S. dollar.
According to local media, Brazil’s presidency will emphasize digital currencies and blockchain solutions within the BRICS bloc, which includes Russia, India, China, and South Africa. Authorities plan to propose a cross-border payment system that could integrate national digital currencies or stablecoins for faster and more secure transactions.
BRICS Explores Crypto for International Settlements
The discussion of cryptocurrency in BRICS trade follows earlier debates over a common BRICS currency. While some economists, such as Jim Rickards, have suggested a gold-backed alternative to challenge the U.S. dollar, BRICS nations are now focusing on practical payment solutions rather than introducing a new currency.
Russia has confirmed that blockchain-based financial infrastructure is a top priority. Russian Foreign Minister Sergey Lavrov recently stated that Brazilian President Luiz Inácio Lula da Silva is spearheading efforts to develop a transborder payment initiative, a BRICS reinsurance company, and a unified clearing system.
Challenges and Opportunities in Crypto Adoption
One potential model under consideration is Brazil’s Pix system, a domestic instant payment network. However, integrating such a system into BRICS trade raises concerns over regulatory differences among member states.
Former U.S. President Donald Trump has strongly opposed any move away from the dollar, even suggesting a 100% tariff regime on BRICS nations if they adopt an independent currency system.
With BRICS discussions underway, the future of crypto-based settlements in global trade remains uncertain. Investors and policymakers will closely watch how the bloc moves forward with digital finance initiatives.
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