A coalition of financially aligned nations has announced plans to create an “independent payments system” as a step away from reliance on the US dollar.

During the SPIEF 2024 Conference in Saint Petersburg, Russian President Vladimir Putin revealed that efforts are underway to establish a system that will protect the sovereignty of national currencies.

“We are currently collaborating within BRICS to develop an autonomous payment system that is free from political influence, manipulation, and external sanctions,” Putin stated.

This announcement comes after initial reports suggested that the BRICS group, led by China and Russia and including Brazil, India, South Africa, Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates, will utilize blockchain technology to support the new payments system.

In an interview with the Russian state-owned news agency TASS, Kremlin aide Yury Ushakov explained that BRICS is working on a fully digital, transparent, and cost-effective system.

“We see the creation of an independent BRICS payment system as a key objective for the future, leveraging cutting-edge tools like digital technology and blockchain. The primary focus is to ensure that it is user-friendly for governments, individuals, and businesses, while also being efficient and apolitical,” Ushakov elaborated.

While the development of the payments system progresses, Ushakov noted that BRICS countries are concentrating on enhancing banking networks and promoting trade in national currencies.

“Efforts will be directed towards advancing the Contingent Reserve Arrangement, particularly in terms of diversifying away from the US dollar,” Ushakov added.

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