Russia has proposed the development and implementation of a BRICS-wide payment system that would use central bank digital currencies (CBDCs) to manage trade settlements. The BRICS bridge, as referred to by Russian Finance Minister Anton Siluanov, would address the fragmentation of the current payment system outside the West’s “unfriendly infrastructure.”
Russia Hints at Using CBDC for BRICS Wide Payment System
Russia is prepared to introduce the use of central bank digital currencies (CBDCs) as tools to facilitate payments among countries of the BRICS bloc, integrated by Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia. In an interview offer to Sputnik, Russian Finance Minister Anton Siluanov stated that Russia, as chairman of the bloc, would promote adopting a system to address the fragmentation of the current “financial, settlement and payment system.”
Siluanov stated:
It is proposed creating a platform that would connect the financial systems of its participants. For example, technological gateways for settlements in digital currencies of central banks are already in operation.
Furthermore, Siluanov explained that this BRICS bridge, as he called this system, would “ensure the proper level of equality and contribute to the development of trade relations” between BRICS countries and friendly nations.
Siluanov added that the bloc was ready to start testing this system with countries wishing to connect their financial system with BRICS nations. “Perhaps with China, perhaps with our neighbors in the EAEU (Eurasian Economic Union), with the countries of the Persian Gulf,” he added.
Russia is currently testing the digital ruble, its CBDC, in a process that will continue until the end of this year, with the participation of 30 national financial institutions. However, Siluanov didn’t directly refer to using the digital ruble in this future system.
China has already launched the digital yuan, and it is experimenting with its usage for international settlements. This use case is being tested through Mbridge, an initiative seeking to connect the economies of China, Hong Kong, Thailand, and the UAE with a common CBDC payment rail.
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