Putin: BRICS to Investigate Digital Currencies for Investment

Notable Insights

BRICS deliberates on digital currencies to mitigate reliance on the US dollar.
A new payment solution, BRICS Pay, launched to facilitate international transactions.

During the BRICS Business Forum held in Moscow, President Vladimir Putin stated that the bloc plans to keep discussions on incorporating digital currencies into investment initiatives.

BREAKING: BRICS to implement digital currencies for investment enhancements. pic.twitter.com/i7u7JFsC55

— BRICS News (@BRICSinfo) October 18, 2024

This shows the organization’s overarching strategy to lessen dependence on the US dollar and pursue greater economic sovereignty. Putin highlighted how digital currencies could be advantageous for both BRICS nations and developing nations.

Putin mentioned that Russia and other BRICS members have been actively developing a financial messaging system similar to SWIFT and utilizing national digital currencies to fund high-growth investment projects.

In tandem with digital currencies, the BRICS bloc is set to rollout the BRICS Pay platform, a blockchain-based payment system that aims to simplify cross-border transactions among member states.

This platform was presented at the forum and is seen as a crucial measure for diminishing reliance on Western financial frameworks. BRICS members, particularly Russia and China, are advocating for its implementation to navigate US sanctions and lessen dollar dependence.

In addition to talks on digital currencies, Putin discussed the expansion of BRICS, welcoming Egypt, Ethiopia, Iran, and the UAE as new members.

He emphasized that over 30 nations have shown interest in collaborating with BRICS, and the forthcoming summit in Kazan will consider potential new additions.

Putin asserted that BRICS is poised to contribute significantly to global economic growth in the upcoming years, due to the bloc’s immense size and rapidly expanding economies in contrast to those of Western countries.

As part of Russia’s initiatives within BRICS, Putin introduced new financial projects, including a collective cross-border payment mechanism and the establishment of a reinsurance entity.

Furthermore, Putin urged the New Development Bank, BRICS’ multilateral development body, to invest in technology, infrastructure, e-commerce, and artificial intelligence across the Global South.