BRICS Pursues Technology-Based Payment System to Reduce Dollar Dependency
The BRICS group aims to lessen reliance on Western currencies like the US dollar by establishing a technology-driven payment system, as announced by Mr. Ushakov, Foreign Policy Advisor to Russian President Vladimir Putin, to TASS news agency.
“We believe it’s crucial to create an independent payment system within BRICS, leveraging modern technologies such as digital currencies and blockchain,” stated Mr. Ushakov, noting its cost-effectiveness and universal applicability.
Russia, currently holding the presidency of the group, supports this initiative.
BRICS Leads the Charge for Economic De-dollarization
While the dollar still dominates global finance, BRICS currencies have seen a significant increase in daily forex market volumes over the past thirteen years, primarily driven by Chinese currency activity.
BRICS economies now account for 31.5% of global GDP in purchasing power parity, surpassing the G7’s 30.7%, indicating a shift in global economic power.
The term “BRIC,” coined in 2001 by Goldman Sachs economist Jim O’Neill to denote emerging economies, expanded to “BRICS” in 2011 with South Africa’s inclusion. Today, the group aspires to enhance its economic influence and emerge as the world’s leading economic powerhouse.
