Latest news from BRICS countries! Belarus proposes to introduce "Central Bank Digital Currency" into the Settlement system to establish a sovereign economic framework.

At the recent BRICS summit held in Rio de Janeiro, Belarusian Foreign Minister Maxim Ryzhenkov stated that the upcoming BRICS Settlement platform should implement these digital currencies once it is legally and technically ready. He emphasized that this platform will help establish "a sovereign economic framework", providing new ideas for the BRICS countries to promote de-dollarization and strengthen internal economic cooperation.

Belarus proposes: Integrating digital currency into the BRICS settlement system

Digital currency will become a fundamental part of the new settlement system under development. As a partner of the BRICS group, Belarus envisions a trading platform that utilizes national digital currencies (i.e., central bank digital currencies, CBDC) to facilitate trade settlements among member countries.

At the recent BRICS summit held in Rio de Janeiro, Belarusian Foreign Minister Maxim Ryzhenkov emphasized that Belarus supports the development of a platform for innovative and secure payment mechanisms involving these digital coins. According to a report by the Russian official news agency TASS, he stated:

"In order to improve the financial infrastructure of BRICS member countries, Belarus has proposed to consider the possibility of integrating a central bank digital currency platform once the legal and technical preparations are ready."

Establishing Sovereign Economic Structures: Key Objectives of BRICS Cooperation

Ryzhenkov stated that the BRICS group has strong cooperation capabilities in the economic and financial fields, emphasizing that this is key to achieving high independence. He assessed: "These initiatives have already entered a substantial phase. The bilateral agreements on mutual settlement, the development of common standards, and the creation of secure financial infrastructure are becoming the foundation for establishing a sovereign economic framework."

He concluded, "Belarus is ready to contribute to the development of these projects."

Russian President Putin previously pointed out the importance of digital payment platforms, calling it a matter that requires "special attention." Finance Minister Anton Siluanov explained in March that these assets are considered part of the tools to drive the future of BRICS trade.

The core of this proposal lies in achieving cross-border Settlement through CBDC, which can bypass the traditional dollar-dominated SWIFT system, thereby reducing geopolitical risks and enhancing financial autonomy among member countries. The digital ruble and digital yuan may become key components of this upcoming payment and investment platform, provided that BRICS countries agree to use these CBDCs for transactions.

The Potential and Challenges of CBDC in Settlement among BRICS Countries

Introducing CBDC into the BRICS settlement system has multiple potentials:

Improving efficiency and reducing costs: CBDC can enable real-time or near real-time cross-border payments, reducing intermediaries and lowering transaction costs.

Enhancing financial sovereignty: Reducing dependence on the US dollar and lowering the risk of being affected by external sanctions.

Facilitating trade facilitation: A unified digital Settlement platform helps streamline trade processes and enhance trade volume between member countries.

However, this proposal also faces challenges:

Technical Standards and Interoperability: The technical standards and interoperability of CBDCs in various countries need to be unified to achieve seamless Settlement.

Legal and Regulatory Framework: The cross-border use of CBDC for Settlement requires consensus among member countries at the legal and regulatory level.

Privacy and security issues: The design of CBDC needs to balance financial efficiency, privacy protection, and network security.

Willingness of member countries: Despite Belarus's active promotion, the willingness and progress of BRICS member countries to use CBDC for trade Settlement vary.

Belarus's proposal to introduce "Central Bank Digital Currency" into the BRICS settlement system is an important step for BRICS countries seeking to establish a "sovereign economic framework." This innovative financial cooperation is expected to reshape the global payment landscape in the future and provide new momentum for the de-dollarization process. However, its ultimate success will depend on the coordination and cooperation of member countries at the technical, legal, and political levels.