Vladimir encourages BRICS member countries to adopt cryptocurrency

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With its Digital Currency Electronic Payment (DCEP), also known as the e-CNY, a digital version of China’s currency created by the government and run by the Central Bank of China, China is leading the way in adopting digital currencies. The goal of DCEP is to provide a contemporary, secure, and efficient payment system for the country.

At the same time, South Africa, the only African nation in the BRICS group (Brazil, Russia, India, China, and South Africa), has raised efforts to tax cryptocurrency transactions as a way to bolster government revenue.

In order to reduce their reliance on the US dollar, Russian President, Vladimir Putin has urged BRICS members to consider adopting cryptocurrencies and other digital forms of money opining that by using digital currencies, BRICS countries and other developing nations can benefit economically. This vision was shared during a forum, which was reported by Russian media and shared by BRICS News on X (formerly Twitter).

However, Putin also gave cognizance to the risks associated with cryptocurrencies stressing the need for strong regulations and a solid framework within BRICS before moving forward with crypto adoption.

Additionally, BRICS countries have introduced a new payment platform designed to challenge the SWIFT financial system, BRICS Pay. With its aims to: to make cross-border transactions easier within the bloc, help countries avoid reliance on US sanctions and establish a more independent financial system.

Globally, the use of cryptocurrencies is growing as countries seek alternatives to traditional financial systems even to the point of exploring Central Bank Digital Currencies (CBDCs), which are digital versions of national currencies issued by central banks. Russia and China have announced plans to roll out CBDCs, although China still has restrictions on private cryptocurrency use.

In summary, with digital currencies and blockchain platforms like BRICS Pay playing a central role in their plans, the BRICS nations are looking for ways to modernize their financial systems.