Brazil is turning its attention to blockchain technology to improve cross-border trade within the BRICS bloc, rather than focusing on the idea of a common currency. According to a Valor Econômico report, the South American country could make blockchain a major focus during its one-year BRICS presidency, which begins in January 2025.
Blockchain Instead of a Common Currency
In the past, discussions within BRICS have focused on creating a common currency to reduce dependence on the US dollar. However, according to sources familiar with the matter, the current goal is not to compete with the dollar but to improve the efficiency of international transactions.
The US administration, under President Donald Trump, has threatened to impose 100% tariffs on countries that try to replace the dollar in global trade. This has led BRICS to look for other solutions to improve cross-border payments, with blockchain being seen as a potential option.
Integrating Blockchain into the Financial System
According to the report, one possible step would be for Brazil to integrate blockchain technology into its financial system. The Central Bank of Brazil has been piloting the Drex project, which aims to build a cryptographic infrastructure for financial transactions. However, the project has struggled to balance privacy and regulatory oversight.
Another option could be to develop a system similar to Pix, a popular instant payments platform in Brazil. However, the report also points out that this approach could raise governance and sovereignty concerns for BRICS member states.
Stablecoins Under Consideration
Russian Deputy Foreign Minister Sergey Ryabkov has suggested that stablecoins could play an important role in international transactions between BRICS members. The bloc has set up a special communication channel between central banks to discuss the solution, but no formal decision has been made.
In fact, in March 2025, several Russian oil companies used cryptocurrencies and stablecoins to convert yuan and rupees to rubles for transactions. This shows the growing interest in digital payment solutions within BRICS.
The Future of BRICS Cross-Border Payments
Brazil's preference for blockchain for BRICS trade could open a new path for the bloc to reduce its dependence on the Western financial system. Although there are still many challenges, blockchain promises to improve efficiency, transparency, and security in cross-border transactions between BRICS member countries.
