Blockchain Business Cryptocurrency Currency Finance Government Market News Tech

BRICS To Create An Internal Cryptocurrency For The Alliance

November 15, 2019
Ross Peili


BRICS To Create An Internal Cryptocurrency For The Alliance

It seems that BRICS’ initial plan to create an internal currency for the alliance’s country members might be finally coming to light, although this time, it is proposed as a cryptocurrency. 

According to Russian financial media outlet RBC, Kirill Dmitriev, the director-general of the Russian Direct Investment Fund (RDIF) said that the idea of a single payments solutions between BRICS’ members was discussed and supported by the Alliance’s Business Council during the 11th annual BRICS Summit that took place in Brazil this year.

BRICS, which basically stands as the combined initials of the member countries (Brazil, Russia, India, China, and South Africa), is not your typical national alliance, neither it is a geopolitical-focused alliance as happens in the EU’s case, but rather a group of autonomous economic powers, covering everything from Asia to Africa and America, and attributes to the 20% of the global foreign investments as Dmtriev pointed out. 

“An efficiently operating BRICS payment system is able to stimulate settlements in national currencies and ensure the stability of settlements and investments between our countries, which form more than 20% of the global influx of foreign direct investment,” Dmtriev said and was supported by all board members. 

Like China’s Crypto was not enough, now a BRICS Crypto is on its way

While India, Brazil, and South Africa are subjecting cryptocurrencies to existing financial regulations, avoiding digging deeper and creating tailored regulations that would separate each blockchain-powered digital currency according to its utility, we’re already in course with China’s publically expressed desire to be a global leader in blockchain technology and global-scale electronic payments, and Russia is not that far behind in terms of adoption of the technology, making the group overall an alliance to watch for when it comes to digital money of the future.

As previously reported by the Economist Times, India, Russia, and China have been already discussing an alternative to the international payment backbone SWIFT, with Huang Qifan taking it as far as saying that China’s DC/EP will completely eliminate the need for the long-monopolizing SWIFT system used by almost every financial institution on the planet. 

The report indicates that the Russian Financial Message Transfer System (SFPS) will be integrated with the Chinese International System of Interbank Payments (CIPS), while it is speculated that India is rushing on the development on its own internal financial data exchange system that will be eventually merged with the Russian/Chinese network. 

Furthermore, Dmtriev showcased that USD’s reign in global trades fell from 92% to 50%, while the Ruble grew from 3% to 14%. 

BRICS’ business council concluded to a homophonous agreement that a single cryptocurrency and BRICS Pay, essentially a mobile application, should be considered and developed in a five-year plan, offering anyone the ability to pay for anything regardless of its initial selling price, or country of origin using BRICS’ new system.   

Now, from a political angle, China alone was already a weight the US was struggling to carry on its back, especially when it came to global trade, international business, and digital payments, and now with the addition of Russia’s expertise and economical influence on the matter, it seems that BRICS is aiming to be a new European Union-like “ICO” run by economies previously suppressed by the western powers.