Emmanuel OchayiPutin Advocates for Digital Currencies Among BRICS Nations
Russian President Vladimir Putin has called for the adoption of cryptocurrencies and alternative digital currencies within the BRICS economic bloc. Speaking at a forum, Putin stated, “It is time for BRICS nations to explore digital currencies to reduce their dependence on the US dollar.” His remarks were reported by Russian media outlet RT and shared on social media platform X by BRICS News.
Join our WhatsApp ChannelThe BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has been exploring alternatives to the traditional financial systems dominated by Western economies. Putin believes that integrating cryptocurrencies into BRICS’ financial transactions could benefit not only the member nations but also other developing and emerging economies.
Putin Acknowledges Risks of Cryptocurrency
While Putin strongly supports the use of digital currencies, he acknowledged the potential risks associated with cryptocurrency, saying, “We must develop comprehensive regulations to manage the volatility of these assets.” He emphasized that a robust regulatory framework is essential before BRICS can fully adopt cryptocurrencies. According to Putin, “This is not just about BRICS; other emerging economies will also benefit from adopting these technologies.”
BRICS Pay: A New Payment Platform to Rival SWIFT
In addition to promoting cryptocurrency, Putin highlighted BRICS Pay, a new payment platform designed to streamline financial transactions within the bloc. BRICS Pay is seen as an alternative to the SWIFT financial system, which is largely controlled by Western nations. The platform aims to reduce reliance on the US dollar and bypass sanctions imposed by Western governments.
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“BRICS Pay reflects our bloc’s determination to create a self-sufficient economic system,” Putin said. He explained that this blockchain-based platform will facilitate cross-border transactions, ensuring smoother financial operations between BRICS members and reducing the bloc’s vulnerability to external economic pressures.
Crypto Adoption Grows Globally
The use of cryptocurrencies is growing worldwide as more countries explore alternatives to traditional banking systems. Central Bank Digital Currencies (CBDCs), digital versions of national currencies issued by central banks, have gained traction. Both Russia and China, two major BRICS nations, have made public their plans to roll out CBDCs in the near future.
China, despite having a soft ban on cryptocurrencies, has developed its own Digital Currency Electronic Payment (DCEP), also known as e-CNY. Putin mentioned China’s progress, saying, “China has taken significant steps with its digital currency, and we should learn from their experience.”
What to Know About Crypto in BRICS Nations
China’s DCEP is currently operated by the Central Bank of China and serves as a response to the growing demand for modern payment solutions. South Africa, the only African nation in BRICS, has increased efforts to tax cryptocurrency transactions as a new revenue stream.
“Other BRICS nations are also looking at ways to benefit from digital currencies,” Putin remarked. As the global shift towards cryptocurrency continues, the BRICS bloc appears eager to establish itself as a leader in this new financial era.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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