How Crypto Is Powering De-Dollarization
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At the sixteenth annual BRICS Summit in Kazan, Russia, several leading members discussed cryptocurrency’s role in de-dollarization. The Presidents of Russia, China, and Iran all stressed the need for new digital platforms. The core of this de-dollarization effort is BRICS Pay, a payment solution platform based on blockchain technology and CBDCs. BRICS Summit 2024 The sixteenth annual BRICS Summit has officially kicked off in Kazan, Russia, and one topic has risen to prominence: de-dollarization. At the BRICS Business Forum days prior, Russian President Vladimir Putin discussed using crypto assets and central bank digital currencies (CBDCs) for secure payments. Now, the topic has grown even further: “There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power,” said Chinese President Xi Jinping. Read More: Digital Rupee (e-Rupee): A Comprehensive Guide to India’s CBDC The core of this reform is the nascent BRICS Pay system. This proposed model will use blockchain technology and CBDCs to facilitate payment options. The system is not operational yet, but BRICS members have long discussed it as a de-dollarization strategy. A mockup of a possible new currency for this system was also presented at the Summit. Mockup Bill of BRICS Currency Alternative. Source: BRICS News In other words, discussions have moved beyond the hypothetical. The BRICS Business Council’s Annual report explicitly discussed the urgency of finalizing these alternate economic platforms. Some representatives advocated a system based on CBDCs like the digital yuan. This mirrors El Salvador’s main reason for making Bitcoin legal tender: further economic independence. Read More: Crypto Regulation: What Are the Benefits and Drawbacks? As Matthew Sigel, Head of Digital Assets Research at VanEck, reported, CBDCs are not the only…
Filed under: News - @ October 24, 2024 4:17 am