Brazil proposes blockchain payment system for BRICS trade

Brazil has proposed a blockchain-based payment system for trade transactions among BRICS nations, moving away from earlier plans to establish a common currency. The initiative aims to facilitate direct transactions in local currencies, eliminating the need for conversion to US dollars.

The proposal seeks to leverage blockchain technology to create a secure and efficient infrastructure, reducing transaction costs and processing times between member countries. 

The plan builds on the success of Pix, Brazil’s domestic digital payment system launched in 2020, which transformed financial transactions in the country. Pix is considered a potential option to serve as a model for interconnected payment systems within BRICS.

Additionally, Brazil plans to expand its Local Currency Payment System, currently operational with Argentina, Uruguay, and Paraguay.