Russia, a member of the BRICS, revealed on Tuesday the development of a new blockchain-based payment system. The cryptocurrency-based payment method and blockchain will function independently as a trade settlement system. The BRICS payment system aims to present itself as a substitute for the US dollar.
TakeAway Points:
- Russia, a member of the BRICS, has developed a new blockchain-based payment system.
- According to the report, this new payment system is user-friendly and beneficial for both governments and the common man.
- The payment system might cause ditches in some financial sectors in the US.
New Blockchain-Based Payment System
he payment system is designed to be user-friendly for corporations, governments, and even regular people.
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Yuri Ushakov, Russian diplomat, confirmed that the new BRICS payment mechanism will boast modern technology that integrates digital assets and cryptocurrencies on the blockchain.
According to the report, BRICS might challenge the US dollar if member countries and other emerging nations could settle cross-border transactions using the new mechanism. This event will increase pressure on the US dollar, causing a decline in supply and demand for it on the international market.
BRICS Reposition
However, Ushakov emphasized that strengthening BRICS’s position in the global financial system is the group’s specific goal this year. The alliance will embark on a new path of global dominance with the implementation of the payment system.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,”
Ushakov said in a report by Tass.
Meanwhile, Ushakov did not reveal an estimated date for the introduction of the new BRICS payment system.
New Payment System Implications
In addition, according to the report, many levels of hierarchy, from governments to the common man, stand to gain greatly if the system succeeds, however, there are some US financial sectors that might experience ditches if BRICS stops using the dollar for international trade and these include; banking, foreign exchange, tourism, and production, according to Watcher.guru Jan. 1 report.
