Brazil may utilize blockchain to improve business processes within BRICS. In recent months, this has become a significant topic of discussion.
Brazil's Plans in BRICS
Brazil is exploring the integration of blockchain technologies in trade operations among BRICS countries. The main focus is on enhancing the efficiency of international transactions, rather than creating a new currency. Brazil's central bank is testing the Drex project, aimed at establishing a tokenized infrastructure for financial operations. However, the project faces challenges related to balancing privacy and oversight.
The Role of Stablecoins
Russian Deputy Minister of Foreign Affairs Sergey Ryabkov suggested the potential use of stablecoins for international settlements among BRICS members. A special communication channel between central banks has been established for this purpose. Nevertheless, no official decisions have been made yet. Russian oil companies are already using various cryptocurrencies and stablecoins for trade with China and India.
Prospects and Challenges
Brazil's Pix system could serve as a model for a future network, though it raises concerns about governance and sovereignty among participating countries. The main challenges involve regulation and ensuring transaction privacy.
Using blockchain within BRICS shows potential for improving trade, although there are many issues regarding security and policy that still need to be resolved.
