The BRICS economic alliance has recently discussed its BRICS pay alternative to the Western SWIFT payment system, but could Bitcoin be integrated into the idea? The US dollar has seen notable gains against the BRICS currencies, while Bitcoin has performed well. Could the digital asset create a jumping-off point for a new global payment system?
The economic bloc has recently discussed its desire to begin working on digital asset integration for BRICS payments. Moreover, it presents a key technological innovation amid the growing financial market. One that could rival SWIFT and the Western weaponization of the US dollar.
BRICS Pay System Could Integrate Blockchain and Crypto
Since its six-country expansion, the BRICS bloc has discussed the creation of its own payment system. Indeed, the economic alliance has spoken about developing an alternative to SWIFT, something that could be adopted across the collective. Yet, with the US dollar outperforming all BRICS currencies, they may be better suited to look outside of fiat.
The developing BRICS pay system could benefit from integrating Bitcoin. The idea stems from the bloc’s own admission to observing digital asset integration. Moreover, the globe has certainly turned toward digital asset development. Subsequently, with nations discussing Central Bank Digital Currencies (CBDC), BRICS could utilize similar technology.
A recent report states that over the last ten years, the US dollar has lost 99.5% against Bitcoin. Although the US dollar is outperforming a host of other assets, it has proven to be a difficult test against the most prominent digital asset on the market. For BRICS to integrate a similar blockchain-based asset, this could be a step forward.
Additionally, the issue solves the problem of an alternative currency for the economic alliance. The world awaited the development of a gold-based BRCIS alternative, but that has seemingly halted. Now, the development of a digital asset potentially pegged to gold could provide a positive alternative for currency and a payment system.