BRICS to explore Digital Currencies for Investments says Putin

At the BRICS Business Forum in Moscow (October 2024), Russian President Vladimir Putin highlighted the bloc’s ongoing discussions about using digital currencies in investment projects.

Putin emphasized the potential of digital currencies to benefit both BRICS countries and other developing economies. This aligns with BRICS’ broader strategy to reduce reliance on the US dollar and increase economic independence. 

The BRICS countries, including Russia, have been developing alternatives to the US-dominated SWIFT financial communications system. One of these initiatives is the possible funding of high-growth investment projects through the usage of national digital currencies.

The summit also unveiled the BRICS Pay platform, a blockchain-based payment system intended to streamline international transactions inside the coalition. With strong support from China and Russia to get over US sanctions, the platform is viewed as a crucial instrument in lowering reliance on Western financial institutions.

Putin also praised the recent addition of Egypt, Ethiopia, Iran, and the United Arab Emirates to the BRICS alliance. More than 30 nations have indicated interest in working with BRICS, and the next meeting in Kazan will examine potential expansion. 

This expansion is seen as a reflection of BRICS’ growing influence, particularly as the bloc is projected to drive the majority of global economic growth in the coming years.

Putin also described Russia’s contributions to the bloc, which include the establishment of a BRICS reinsurance firm and a cooperative cross-border payments system.

Additionally, he called on the New Development Bank, the multilateral development organization of the BRICS, to make investments in important areas of the Global South, including infrastructure, technology, e-commerce, and artificial intelligence.

Within BRICS and its growing network of partners, these programs seek to promote innovation and deepen economic linkages.