Brazil to Promote Blockchain in BRICS Trade During Chairmanship

According to Odaily, Brazil is planning to advocate for the use of blockchain technology in international trade among BRICS member countries to streamline financial transactions in import and export contracts. This initiative will be a priority for Brazil when it assumes the rotating presidency of BRICS in January 2025. Unlike previous discussions about creating a common BRICS currency, this proposal is not intended to challenge the U.S. dollar's role in global trade but aims to enhance the efficiency of international transactions by leveraging the immediacy and programmability of cryptocurrencies. Stablecoins have already been used informally in some cross-border transactions. The Central Bank of Brazil is advancing the Drex pilot project, a key initiative exploring the application of blockchain in the traditional financial system. Drex seeks to establish a financial asset trading infrastructure based on tokenization technology, with a focus on cross-border transactions. However, the project faces challenges in maintaining transaction privacy while ensuring central bank regulatory control in a decentralized environment. In addition to blockchain solutions, another potential alternative is the creation of a multinational integrated network similar to Brazil's instant payment system, Pix. However, this model may raise concerns among member countries regarding governance and financial sovereignty.