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Brazil has initiated efforts to integrate blockchain into trade transactions among BRICS nations—Brazil, Russia, India, China, and South Africa—as part of its presidency of the bloc, which began in January.
This initiative has become a focal point during Brazil’s leadership of BRICS, aligning with broader discussions on trade and financial infrastructure.
Sources familiar with the discussions indicate that the objective is not to replace the U.S. dollar but to enhance the efficiency of international transactions by increasing speed and transparency.
A report from the Brazilian newspaper Valor Econômico highlighted that the current discussions on blockchain contrast with previous BRICS debates on creating a common currency, shifting the focus toward transaction efficiency rather than monetary unification.
The report suggests that the proposed payment system could leverage technology that mirrors the speed and programmability of cryptocurrencies. However, the report highlights concerns that a shared digital payment network could introduce governance challenges and raise questions about the financial sovereignty of BRICS members.
The Central Bank of Brazil has been piloting Drex, a digital infrastructure project designed to support tokenized cross-border transactions, aligning with the country’s broader blockchain ambitions.
Russian presidential advisor Yury Ushakov described the initiative as a strategic move to lessen BRICS nations’ reliance on the U.S. dollar in global trade.
During a meeting in March 2024, BRICS representatives outlined plans to establish a blockchain-powered payment system that integrates digital currencies.
Putin highlighted that BRICS has introduced a financial messaging system comparable to SWIFT and has begun testing national digital currencies to support large-scale economic projects.
Speaking at the BRICS Business Forum in Moscow in October 2024, Russian President Vladimir Putin underscored the role of digital currencies in strengthening financial independence among BRICS and other emerging economies.
Findings from the study suggest that shifting 50% of cross-border transactions to blockchain could result in annual savings of up to $15 billion for BRICS nations.
A collaborative study by the Russian Ministry of Finance, the Bank of Russia, and the law firm Yukov and Partners examined the potential of blockchain-based state-issued digital currencies in strengthening financial self-sufficiency across BRICS nations.