The Russian President, Vladimir Putin has urged members of the BRICS bloc (Brazil, Russia, India, China, and South Africa) to adopt cryptocurrencies and other alternative digital monies in their financial transactions to lessen the reliance on the US dollar.
The Russian leader strongly believes that BRICS and other developing nations can benefit from embracing digital currencies revealing his intentions to push for the economic bloc to integrate crypto into their daily financial dealings.
The statement by Putin was made at a forum and captured by Russian Media outlet RT and shared by Brics News on X a handle proficient in sharing updates on the BRICS economic bloc.
Putin said that BRICS member nations will talk about using digital currencies in investment developments stressing that BRICS members are not the only ones who will benefit from crypto adoption but other developing and emerging economies as well.
However, Putin recognized the volatile nature of crypto assets stating that comprehensive regulations should be established first while highlighting the significance of coming up with a robust framework within the BRICS jurisdiction before dipping into crypto adoption.
BRICS PAY
Aside from the clamor for the use of cryptocurrencies within the BRICS jurisdiction. The BRICS nation presented a new payment platform that will challenge the SWIFT Financial system.
This alternative is known as BRICS PAY and is considered a milestone in revolutionizing financial transactions among the BRICS members.
The blockchain platform would streamline cross-border transactions within the BRICS bloc, serving as an alternative to SWIFT and evading US sanctions.
BRICS Pay reflects the goals and aspirations of its bloc members to establish a self-reliant economic framework that is free from the control of traditional power structures.
Crypto Adoption on a Global Rise
The adoption of cryptocurrencies is becoming quite famous in several countries as the urge to find alternatives to traditional financial systems continues to grow.
Various countries are considering adopting crypto as part of their financial operations with Central Bank Digital Currencies (CBDC) becoming quite popular as well.
CBDCs are digital versions of a nation’s currencies issued by its central Bank. Countries like Russia have announced plans to roll out their CBDCs soon.
Russia and China are the two BRIC nations that have made public their plans to embrace digital currencies although there is a soft ban on crypto in China.
What to Know
- China has made bold steps is adopting digital assets by creating a Digital Currency Electronic Payment (DCEP).
- DCEP, also known as e-CNY, is digital money created by the Chinese government and is currently operated by the Central Bank of China. DCEP is China’s response to the public’s clamor for a modern payment solution.
- South Africa the only African country in the BRICS bloc has ramped up its efforts to Tax crypto transactions as a new means of revenue for the government.