As the rotating chair of BRICS (Brazil, Russia, India, China, South Africa) this year, Brazil is actively advancing an ambitious agenda: establishing cryptocurrency as a key solution for facilitating international trade both within the bloc and beyond.
Brazil's Crypto-Focused Proposal Gains Momentum
Brazilian authorities have formally proposed integrating cryptocurrency into BRICS trade mechanisms, receiving notable support from member states like Russia. Discussions are underway to determine the most effective implementation framework.
Key Objectives Behind the Initiative:
- Accelerating financial transactions between BRICS members
- Reducing reliance on foreign currencies like the USD
- Leveraging digital national currencies and stablecoins for settlements
Unlike earlier discussions about a potential BRICS common currency (potentially gold-backed), Brazil's current proposal focuses on payment system efficiency rather than currency creation.
Russia's Parallel Crypto Adoption Efforts
Russia confirms this initiative as a BRICS priority, with Foreign Minister Sergey Lavrov acknowledging Brazil's leadership in:
- Developing cross-border payment solutions
- Establishing reinsurance infrastructure
- Creating BRICS clearing/custody systems
Russia independently explores cryptocurrency applications for international trade due to Western sanctions. Since late 2024:
- Russian oil companies reportedly use Bitcoin, Ethereum, and Tether for settlements with China/India
- Monthly crypto trade volumes reach tens of millions USD per petroleum trader
Brazil's Domestic Blockchain Advancements
The Central Bank of Brazil's Drex Project promotes tokenized financial transactions, particularly for cross-border deals. This aligns with Brazil's strategic view that cryptocurrencies optimize digital asset settlements more effectively than creating new fiat alternatives.
👉 How cryptocurrency transforms global trade dynamics
Frequently Asked Questions (FAQs)
Q: Why is cryptocurrency important for BRICS trade?
A: Crypto enables faster settlements, reduces USD dependency, and bypasses traditional banking barriers—especially valuable for sanctioned economies like Russia.
Q: What's the difference between Brazil's proposal and a BRICS currency?
A: The proposal focuses on payment infrastructure using existing digital assets, whereas a common currency would require creating new monetary instruments.
Q: How are stablecoins used in international trade?
A: Traders use dollar-pegged stablecoins like Tether as intermediary assets to convert between national currencies (e.g., CNY→USDT→RUB).