BRICS Plans Digital Payment System to Boost Developing Markets

• BRICS is exploring the use of digital assets for foreign trade to support developing markets.
• Russia’s President Putin proposed a new investment platform for electronic payments at the Valdai Discussion Club.
• The BRICS alliance aims to reduce reliance on the U.S. Dollar, welcoming new members Egypt, Ethiopia, Iran, and the UAE.

One of the largest political and economic alliances in the world is planning to use digital assets in foreign trade. BRICS – the supergroup formed by Russia, India, China, Brazil, and South Africa – could be working towards a new platform that could support development markets and international trade. 

In an appearance at the Valdai Discussion Club, Russia’s President Vladimir Putin spoke about the new platform, and how this digital payment system could help developing regions on a path to greater financial independence and stability.

“We suggest creating a new investment platform,” Putin said according to Tass. “The point is to create such a platform of electronic payments, with the use of which it will be possible to invest in developing markets, and these are primarily markets of South Asia, Africa, and Latin America.”

This development appears to be yet another sign that many BRICS members are looking for alternative trade methods that escape the grasp of the United States and its sanctions. Only a couple of weeks ago reports arose regarding BRICS nations stocking gold and other commodities, reflecting the group’s desire to stock reserves outside of the U.S. Dollar. 

Recently BRICS welcomed new members to the group: Egypt, Ethiopia, Iran, and the United Arab Emirates.

The supergroup’s wish to forego the greenback goes in direct contrast with Donald Trump’s campaign projects that emphasized that America should do its best to maintain the U.S. Dollar as the global reserve currency, ensuring its dominance in international trade.

During his initial term from 2016 to 2020, Trump and Putin maintained a relatively amicable relationship, at least by the standards of U.S.-Russia relations. Moving forward it will certainly be interesting to see how Trump deals with the Putin dilemma in a world far different than the one we had in 2016.