Brazil, Russia, India, China, India and South Africa, the BRICS countries, are analysing the SPS in crypto form. Is the US therefore threatened with the loss of market leadership?

Recent reports

The business council of the BRICS countries supported the idea of creating a system called “One-time payment” in settlements for agreements between member states. The Russian media RosBiznesConsulting (RBC) reported this on November 15, citing the words of Kirill Dimitriev, Director General of the Russian Direct Investment Fund (RDIF).

The news concerns the eleventh summit of the BRICS countries that took place on 13-14 November in Brazil, where the topics of innovation in new technologies and the digital economy were discussed. Talking about the two biggest problems, namely money laundering and drug sales on the streets, the conclusion was reached that they should be solved through the Single Payment Scheme.

The idea is to reduce the differences between developing and developed countries and it is interesting because China, a member of the BRICS, is currently working on its crypto currency.

Explanations by DimitriEv

“The BRICS payment system, which works effectively, is able to stimulate settlements in national currencies and guarantee the stability of settlements and investments between our countries. The Director of RDIF also points out that the integration and development of such a system will be a guarantee of security for BRICS countries in the face of unrestrained currencies outside the global payment infrastructure.

At the same time Dimitriew notes that dollar settlements in foreign trade have recently dropped from 92 to 50%, so it is a good time to implement alternative ideas. The second justification for the initiative is the fact that 20% of global settlements on world markets are between BRICS countries.

Dimitriev further assures that the BRICS cryptocurrency will not be strictly money, but only a form of documentation transferring liabilities from one entity to another and being the documentation of claims.

The importance of the BRICS idea

First of all, there is the strengthening of unity between the BRICS countries in terms of innovation and technology and the digital economy, and such a move may be aimed at reducing dependence on the US currency for international transactions. Is this death for the US dollar?

The RBC reports that this is a competitive struggle between the BRICS countries and the SWIFT payment system, which allegedly allows the United States to monitor global transactions.

The whole idea comes at a time when China wants to introduce the digital Renminbi, which could, at least according to some experts, become a world reserve currency independent of the dollar. That concludes that, if the United States does not start working on innovation in this area, it will lag far behind and not only behind the BRICS countries.

They are not the only ones thinking about introducing such a currency. In October, the association of German banks presented a document that clearly calls for the creation of a digital euro.

Travon Temple
Witold Adruszczak CEO of the project for 3 years associated with the crypto industry. This year we have decided on an international project. Our goal is to build Bitcoin awareness in the world. Education and support for people with no experience in the new industry which are cryptocurrencies. If you need more support please write in the comment. For all I always try to answer questions under the articles.