The BRICS countries (Brazil, Russia, India, China, and South Africa) have announced their intention to pursue de-dollarisation by exploring the use of blockchain-based payments for their international transactions.
This move comes in response to increasing concerns about the dominance of the US dollar in global trade and finance, and the potential risks associated with relying on a single currency for international transactions.
Blockchain technology, which underpins cryptocurrencies like Bitcoin, offers a secure and transparent way to conduct transactions without the need for intermediaries like banks. By using blockchain-based payments, the BRICS countries hope to reduce their dependence on the US dollar and increase the efficiency and security of their international transactions.
The BRICS countries have already taken steps to promote the use of their own currencies in international trade, with initiatives like the BRICS Contingent Reserve Arrangement and the New Development Bank. By leveraging blockchain technology, they aim to further diversify their payment options and reduce their exposure to the risks associated with a single dominant currency.
While the transition to blockchain-based payments may take time and require coordination among the BRICS countries, the potential benefits of de-dollarisation are significant. By moving away from the US dollar as the primary medium of exchange in international trade, the BRICS countries can increase their economic sovereignty and reduce their vulnerability to external financial shocks.