Brazil plans to propose to use "cryptocurrency" for trade in BRICS countries and use this as a priority during its term of office in the rotating presidency

PANews reported on March 14 that according to Brazil's media O Globo, Brazil plans to simplify international financial transactions in import and export contracts between BRICS member states by using blockchain technology. This issue will become one of the priority issues during the term of Brazil's rotating presidency. Brazil's rotating presidency will last for one year starting from January 2025. The proposal is different from the previous proposal to create a common currency of the BRICS countries. Sources said the move was not intended to create a foreign trade standard trading currency that competes with the US dollar. The focus this time is on improving the efficiency of international transactions, which can be achieved through a technology closer to the immediacy and programmability of cryptocurrencies, which have been widely used in informal occasions.

One of the main practical moves to introduce blockchain into a regulated traditional financial system is Drex, the pilot project of the Central Bank of Brazil (BC). The project creates a tokenized infrastructure for trading financial assets. One of the use cases Drex is looking at is cross-border transactions. However, the project faces a challenge of how to maintain privacy while ensuring the central bank’s control over transactions in a decentralized digital environment. If blockchain technology is not adopted, another option is to create an integrated network system similar to Pix. However, this approach has raised concerns about the governance rights and sovereignty of relevant countries.