Russian President Vladimir Putin has announced that BRICS is officially adopting cryptocurrencies for investments. The announcement came out at the Business Forum, in Moscow.
The highly anticipated BRICS Summit 2024 is almost here. It will be happening next week. There is an expectation of several important announcements about the economic policies of the group.
One of these announcements includes the blockchain-based BRICS Pay platform which was recently revealed at the forum.
BRICS Pay and crypto expansion
Russia, along with other BRICS members, has been hard at work developing a SWIFT-like financial messaging system.
The key difference here? It’s built to support national digital currencies, not traditional fiat. These currencies will be used to finance high-growth investment projects.
BRICS Pay is designed to make cross-border transactions within the BRICS nations smoother and less reliant on Western financial systems.
BRICS Pay has massive potential to bypass U.S. sanctions, with Russia and China particularly keen on the idea. They see it as the next logical step in decreasing their dependence on USD and the financial systems that support it.
Putin also took time to talk about the expansion of the BRICS bloc itself. He welcomed the addition of Egypt, Ethiopia, Iran, and the UAE.
Over 30 countries, according to Putin, have shown interest in joining the bloc or cooperating with it. All of these new potential members will be on the agenda at the upcoming BRICS summit in Kazan.
Putin believes that the combined size and rapid growth of BRICS economies will outpace the sluggish performance of many Western nations.
New financial initiatives and Russia’s role
Putin laid out a whole range of financial initiatives designed to cement BRICS’ role as a global economic leader.
First up is a joint cross-border payments system, which will further remove the need for reliance on the West.
On top of that, Putin proposed the creation of a BRICS-backed reinsurance company, adding more layers of financial independence.
Another point he made was about the New Development Bank (NDB), BRICS’ multilateral development institution.
He urged the NDB to ramp up investments in areas like technology, infrastructure, e-commerce, and artificial intelligence, specifically targeting the Global South.
According to the Russian president, these sectors will be key to driving future economic growth for both BRICS members and all developing countries.
“The countries in our association are essentially the drivers of global economic growth,” said Putin. This is what he calls “economic sovereignty.”
The forum was also an opportunity for Russia to promote its mega infrastructure projects, which he says will boost global trade. He put out two key projects. The Arctic Sea Route and the North-to-South corridor.
These routes are meant to connect Russia to the Gulf and Indian Ocean through the Caspian Sea and Iran, increasing freight traffic between Eurasia and Africa.
Putin sees this as important for boosting trade between BRICS nations and emerging markets. The president said that “the doors are open,” and no one is being excluded from cooperating with the bloc.
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