Alexander Babakov, Deputy Chairman of Russia’s State Duma, has suggested the creation of a unified exchange for BRICS nations, utilizing blockchain technology and virtual currency to facilitate inter-bloc trade and settlements. Babakov emphasized that this initiative would promote economic independence and sovereignty among BRICS member states, bypassing third-party payment systems.
New BRICS Exchange Could Incorporate Blockchain and Digital Currency
The BRICS group is exploring digital payment solutions to decrease its reliance on external financial systems. Babakov proposed the formation of a centralized BRICS exchange that would streamline trade between member countries, covering products ranging from raw materials to finished goods.
In an interview with Ria Novosti, Babakov explained that this unified platform would allow participating nations to move away from using adversarial currencies, such as the U.S. dollar, for their transactions. He noted that the proposed system could facilitate payments in national currencies and even develop a unique settlement system based on blockchain technology and a unified virtual currency, enhancing the financial sovereignty of BRICS nations.
While discussions around a single BRICS currency gained momentum last year, the bloc has since shifted its focus to boosting the use of national currencies in trade. This shift has already shown success, with transactions in local currencies outpacing U.S. dollar settlements.
A Significant Share of Global Trade
The BRICS bloc, comprising Brazil, Russia, India, China, South Africa, along with newer members Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, accounts for approximately a quarter of global trade and over a third of the world’s GDP. A unified exchange of this scale would play a significant role in global commerce, potentially reducing the dominance of the U.S. dollar.
Russian President Vladimir Putin recently announced that BRICS is developing an independent payment system designed to facilitate foreign trade more efficiently. This system could be integrated into the proposed exchange, creating a more robust financial infrastructure for BRICS countries.
