Brazil plans to propose using 'cryptocurrency' for BRICS trade and make it a priority during the rotating presidency

According to Brazilian media O Globo, Brazil plans to simplify international financial transactions for import and export contracts between BRICS member countries by utilizing blockchain technology. This issue will become one of the top priorities during Brazil's presidency. The rotating presidency of Brazil will begin in January 2025 and last for one year. This proposal is different from the previous idea of creating a common currency among BRICS countries. Sources say that this move is not aimed at creating a standard trading currency for foreign trade 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 that is closer to the immediacy and programmability of cryptocurrencies. Stablecoins have been widely used in informal settings. A major practical measure to introduce blockchain into the regulated traditional financial system is the pilot project Drex of the Brazilian Central Bank (BC). This project has created a tokenization infrastructure for trading financial assets. One of the use cases that Drex is researching is cross-border transactions. However, the project faces a challenge of how to ensure the Brazilian central bank's control over transactions while maintaining privacy 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 and sovereignty of the relevant countries.