Source: Chards

Russia, a member of the BRICS, has revealed plans to develop a new blockchain-based payment system for BRICS in its bid to counter over-dollarization. The cryptocurrency-based payment method will function independently as a trade settlement system. The BRICS payment system aims to present itself as a substitute for the US currency.

The payment system is designed to be user-friendly for corporations, governments, and even regular people. Thus, from the governments to the common man, stand to gain greatly if the system succeeds. The new BRICS payment system which is aimed to be a multifaceted alternative to the US dollar would use cutting-edge technology that integrates digital assets and cryptocurrencies on the blockchain, according to Russian ambassador, Yuri Ushakov.

With a payment system that enables members and other developing nations to settle cross-border transactions via the new mechanism, BRICS hopes to challenge the US dollar. The event will increase pressure on the US dollar, causing a decline in supply and demand for it on the international market. Ushakov emphasized that strengthening BRICS's position in the global financial system is the organization’s main goal for this year and the implementation of this blockchain-based payment system is a step in that direction. The alliance will embark on a new path of global supremacy with the implementation of the payment system.

Although a specific date on when the new BRICS payment system will be launched has not yet been stated, it will probably be revealed during the October 2024 summit.