A coalition of economically aligned nations has announced plans to establish 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 create a system aimed at protecting the sovereignty of national currencies.

“Our focus within BRICS is on developing an autonomous payment system that is immune to political pressures, manipulation, and external sanctions,” Putin stated.

Reports indicate that the BRICS alliance, 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 power this new payment system.

In an interview with Russian state-owned news outlet TASS, Kremlin aide Yury Ushakov emphasized that BRICS is designing a digital, equitable, and cost-effective system.

“We see the establishment of an independent BRICS payment system as a crucial objective for the future, one that will leverage cutting-edge tools like digital technologies and blockchain. The key is to ensure its accessibility for governments, citizens, and businesses, while maintaining cost-efficiency and neutrality towards politics,” Ushakov explained.

While the payment system is under development, Ushakov noted that BRICS nations are actively working on strengthening banking networks and promoting trade in national currencies.

“Our efforts will be directed towards enhancing the Contingent Reserve Arrangement, particularly in diversifying away from the US dollar,” he added.

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