The Brazilian authorities plan to propose the use of blockchain technology in international trade among BRICS countries, according to a report by O Globo.
This initiative will be one of the priorities during Brazil’s presidency of the bloc, which began in January and will last for a year.
The idea differs from the previously discussed creation of a common currency for BRICS countries. Sources highlighted that the initiative’s goal is not to compete with the dollar as the primary currency for international trade, but to enhance the efficiency of cross-border operations.
This time, the focus is on improving the efficiency of international transactions, achievable through technology that ensures near-instant operations and programmability, as implemented in cryptocurrencies. Stablecoins are already widely used unofficially for cross-border transactions and remittances, the publication noted.
One of the key initiatives for integrating blockchain into the traditional regulated financial system is Drex, a pilot project by the Central Bank of Brazil.
It aims to create a tokenized infrastructure for financial operations. However, the project faces challenges related to simultaneously ensuring transaction privacy and maintaining full control by the Central Bank.
An alternative to using blockchain could be the creation of an integrated network similar to Brazil’s Pix payment service, raising concerns about governance and sovereignty issues among participating countries.
Back in June 2024, Russia, together with the central banks of BRICS countries, began developing the BRICS Bridge platform for settlements in national currencies, including digital ones.
