Russian President Vladimir Putin has called on members of the BRICS bloc to adopt cryptocurrencies and alternative digital currencies for financial transactions.
This move aims to lessen the reliance on the US dollar.
Putin’s remarks were made during a recent forum and reported by the Russian media outlet RT.
He emphasized the potential benefits for BRICS nations, which include Brazil, Russia, India, China, and South Africa, as well as other developing countries.
According to Putin, the integration of digital currencies into everyday financial dealings could greatly enhance economic cooperation among these nations.
“BRICS members stand to gain significantly from embracing digital currencies,” he said.
Putin stressed that discussions about using cryptocurrencies for investment developments would be a key focus for the bloc moving forward.
While advocating for crypto adoption, Putin also acknowledged the volatile nature of cryptocurrencies.
He urged the need for comprehensive regulations to safeguard users.
“Before we dive into crypto adoption, a robust regulatory framework must be established within BRICS,” he added.
In addition to the push for cryptocurrencies, BRICS nations introduced a new payment platform known as BRICS PAY.
This alternative payment system aims to challenge the traditional SWIFT financial network.
BRICS PAY represents a significant milestone in facilitating cross-border transactions among member countries.
With this blockchain-based platform, BRICS aims to create a self-reliant economic framework that avoids the influence of conventional power structures.
The new system reflects the bloc’s commitment to fostering financial independence and resilience against external sanctions.
Globally, the adoption of cryptocurrencies is gaining momentum.
Countries are increasingly seeking alternatives to traditional financial systems, leading to a rise in digital currencies.
Central Bank Digital Currencies (CBDCs) have emerged as a popular option for several nations.
CBDCs are digital versions of a country’s currency issued by its central bank.
For example, Russia has announced plans to launch its own CBDC soon.
China is also making significant strides in the crypto space.
The country has developed the Digital Currency Electronic Payment (DCEP), also known as e-CNY.
This digital currency is designed to modernize China’s payment system and is currently operated by the People’s Bank of China.
In the BRICS bloc, South Africa has taken steps to regulate the crypto space by taxing digital currency transactions.
This move aims to generate new revenue streams for the government while providing a structured environment for crypto users.
As more countries recognize the potential of cryptocurrencies, the BRICS nations are positioning themselves at the forefront of this global financial evolution.
