Russian Finance Minister reveals that BRICS nations are possibly to launch unified blockchain-based system for financial settlements

2024-06-13 05:56:34

(MENAFN) During the St. Petersburg International Economic Forum (SPIEF) 2024, Russian Finance Minister Anton Siluanov revealed that finance ministers from BRICS nations are actively discussing the potential launch of a unified blockchain-based system for financial settlements. This initiative aims to offer an alternative to the current SWIFT system, which is dominated by Western financial institutions.

Siluanov emphasized that the primary objective of this proposed mechanism is to mitigate the significant risks associated with United States dollar settlements in global trade, as perceived by BRICS member countries. Speaking to Izvestia at SPIEF, he outlined Russia's proposal to establish a shared platform for exchanging digital financial assets issued by central banks using national currencies as the foundation.

Describing the initiative as futuristic, Siluanov highlighted the pivotal role of digital financial assets, tokens, and blockchain technology in enabling a transition away from SWIFT. He assured that this new payment system would bypass conventional banking channels, thereby mitigating risks for participating banks.

However, Siluanov noted that achieving consensus among all BRICS nations on the proposal is crucial before proceeding with the implementation. He underscored that using national currencies for cross-border transactions has become increasingly vital for Russia, particularly in light of existing sanctions that pose challenges for financial institutions facilitating payments with Russian banks.

The finance minister's comments reflect BRICS' strategic efforts to enhance financial sovereignty and bolster economic ties among member nations through innovative digital solutions. As discussions continue, the initiative could potentially reshape global financial dynamics, offering an alternative framework for secure and efficient international financial transactions outside traditional Western-dominated systems.

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