Russian Deputy Foreign Minister Sergey Ryabkov revealed that the BRICS bloc has been considering the use of stablecoins for its common rail payment systems. In an interview with TV BRICS, Ryabkov stated that the use of stablecoins and a connection linking the CBDCs of the participants were studied as part of the integration processes of the organization.
BRICS Bloc Mulls Stablecoins, CBDC-Based System for International Settlements
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BRICS Mulls Stablecoins, CBDCs for Intermember Economic Integration and International Settlements
The BRICS bloc is considering several options in the design of an inter-member economic settlement system. In an interview with TV BRICS, Russian Deputy Foreign Minister Sergey Ryabkov stated that the international bloc, integrated by Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia, was mulling the use of stablecoins and other digital currencies as part of this new payment network.
When asked about the economic agenda elements that Russia as chairman of the bloc, Ryabkov stated:
Several options are being considered. For example, settlements in stablecoins or the option of creating a platform that will unite the financial systems of its participants.
TV BRICS emphasized that this platform would be the so-called BRICS bridge, which would allow for the settlements using the different digital currencies of member countries.
While the use of central bank digital currencies ( CBDCs) has been mentioned before by several Russian officials as elements for this upcoming settlements system, it’s one of the first times that stablecoins are mentioned as tools for this task. Stablecoins are tokens tied to the value of another asset, like the U.S. dollar, but can also be tied to gold, for example, or to other commodities.
Nonetheless, Ryabkov stated that other, more traditional approaches have also been expedited. “We have already established a special channel for information exchange between central banks and approved regulations for co-operation in the field of information security,” he stressed.
In March, President Vladimir Putin’s aide Yury Ushakov remarked on the need to have a payment system “convenient for governments, common people and businesses, as well as cost-effective and free of politics” to diminish the reliance on the U.S. dollar.
What do you think about the use of stablecoins as a base for a BRICS-wide payment system? Tell us in the comments section below.
