Brazil Explores Blockchain Solutions for Enhanced Trade within BRICS Nations

Brazilian authorities are planning to propose the use of blockchain technology for international trade among BRICS nations. This information was reported by the publication O Globo.

This initiative will be a priority during Brazil’s year-long presidency of the bloc, which commenced in January.

The idea differs from previous discussions about creating a common currency for BRICS nations. Sources from the publication emphasized that the aim of this initiative is not to compete with the US dollar as the primary currency for international trade, but rather to enhance the efficiency of cross-border transactions.

This time, the focus is on improving the efficiency of international transactions, which can be achieved through technology that enables nearly instant operations and programmability, similar to functionalities found in cryptocurrencies. The article noted that stablecoins are already being widely used unofficially for cross-border transactions and remittances.

One of the central initiatives to introduce blockchain into the traditional regulated financial system is Drex, a pilot project by the Central Bank of Brazil. This project aims to establish a tokenized infrastructure for financial operations but faces challenges related to ensuring transaction privacy while maintaining complete control by the Central Bank.

An alternative to utilizing blockchain could be the development of an integrated network similar to Brazil’s Pix payment service, which raises concerns regarding governance and sovereignty among member countries.

To recall, in June 2024, Russia, together with the Central Banks of BRICS countries, began working on launching the BRICS Bridge platform for transactions in national currencies, including digital versions.