At the 17th Brics top meeting in Rio de Janeiro, a new payment system for members was one of the most important topics on the agenda. Belarus suggested one Central Bank digital currency (CBDC) -linked system that would facilitate cross -border payments and reduce dependence on the US dollars.
But a new system is still years away, according to some of the officials at the summit, and Donald Trump’s fresh customs threat Just adds uncertainty.
Belarus: CBDCs are the solution for BRICS
At the Rio summit, managers for state and highest government officials discussed the 10 BRICS members and other partners new financial rails that can reduce dependence on Western systems such as SWIFT. The blocks have been investigated alternatives for at least a decade, but according to sources at the event, they are not closer to a solution.
Belarus, represented by Foreign Minister Maxim Ryzhenkov, says CBDCS may be the solution.
“We support efforts to create a multi -level settlement system that combines innovative payment instruments with reliable security mechanisms,” he mentionedaccording to a statement from the ministry.
“In order to improve the financial infrastructure of the BRIC members, Belarus proposes to consider the possibility of integrating the central bank’s digital currency platforms when they are legally and technically ready for integration.”
This is not the first time a CBDC system has been proposed. 2024, Speculation was common The Mbridge, the cross-border CBDC project that includes Thailand and China, would form the basis for a Brics CBDC system, which was given the bank for international settlements (BIS) departure from the project (although it Issued diplomatic reasons for their departure).
However, the larger economies in BRIC have shown that such a system is years away. For example, Russia has noted that all members would do must develop new national systems It can be integrated into the network and that they may need to explore simpler alternatives in the short term.
At the Rio -Top meeting, officials told Bloomberg that although all members support a new system, the technical requirements are currently too complex. There are also financial issues, such as how to share the costs and decommissioning currency; At present, most members’ currencies are non-convertible.
The enlargement of Block’s membership has also further complicated the potential roll -out of all new systems. Brics now have ten members, with the United Arab Emirates, Indonesia and Egypt among the new members. Saudi Arabia has officially been invited and “studying the terms”; It is expected to join the block officially in the near future.
Supporting BRICS will earn 10% extra customs, Trump warns
In addition to the technical and economic complexity of developing a new global payment system, a new challenge faces BRICS: Truar Tullhot from US President Donald Trump.
When the block gathered in Brazil, Trump threatened to slap an extra 10% duty for any nation that is consistent with “the anti -American policy of Brics.”
“There will be no exceptions to this policy,” he added.
While he did not work out the “anti-American politics”, experts say it was a thinly smiled reference to the blocks of the blocks Payment systemtrying to move away from the US dollar.
BRICS leaders quickly responded to the threat, with Brazilian President Luiz Inácio Lula da Silva, who denoted it as “very wrong and very irresponsible.”
“The world has changed. We don’t want a Emperor. We are superb countries,” Lula abandoned. “The world must find a way so that our trading relationship does not have to go through the dollar. No one has established that the dollar is the currency standard.”
Russian Foreign Minister Sergei Lavrov said the threat was proof that the United States only preaches globalization when it benefits American interests. Lavrov, which stood for Putin in Rio, added that the United States had “flagrantly abused” the dollar to exert influence on other nations.
While the BRICS nations fought back in Rio, the story has shown that Trump’s threat is important and can quickly erode a nation’s decision. When the Republican leader was aimed at South Africa over waste plans, Cyril Ramaphosa government quickly issued a statement that claimed it had no intention to dike greenback.
Look: Find ways to use CBDC outside digital currencies
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