The BRICS countries are striving to move away from dependence on the U.S. dollar and reform the international financial architecture. Blockchain technology and CBDCs (Central Bank Digital Currencies) will play a crucial role in this.

On Oct. 23, leaders of the BRICS countries met in Kazan, Russia, to discuss the geopolitical situation. Dedollarization, or reducing dependence on the U.S. dollar in international trade, was high on the agenda.

Chinese President Xi Jinping stressed the urgent need to reform international financial structures. "BRICS must play a leading role in promoting a new system that better reflects the profound changes in the global economic balance of power," he stated.

JUST IN: 🇨🇳 Chinese President Xi Jinping says BRICS must promote a new financial system.

"There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the… pic.twitter.com/dXFoZ1Rhil
— BRICS News (@BRICSinfo) October 23, 2024

Vladimir Putin announced the project BRICS Pay to, which should make cross-border transactions between BRICS countries smoother, with less dependence on Western financial systems. The project is aimed at circumventing U.S. sanctions. The model, which resembles a CBDC, is based on blockchain technology to enable payments. Putin already showed at the BRICS summit a physical bank bill that will be part of this system.

Recently, the Kremlin introduced comprehensive regulations that will allow the use of cryptocurrency for foreign trade starting in November.

Traditionally composed of Brazil, Russia, India, China and South Africa, the BRICS group has expanded to include countries such as Egypt, Ethiopia, Iran and the United Arab Emirates. Further expansion is expected in the future.