Brazil has proposed a blockchain-based payment system for BRICS trade transactions, abandoning earlier plans for a common currency.The Brazilian presidency, which began in January 2025, outlined this initiative as a central priority for its one-year term leading the expanding economic bloc.
The proposal focuses on enabling direct transactions in local currencies without converting to US dollars first.Brazil aims to leverage blockchain technology to create a secure infrastructure that reduces transaction costs and processing times between member nations.
This approach represents a pragmatic solution to enhance economic cooperation while avoiding direct confrontation with dollar dominance.President Luiz Incio Lula da Silva previously expressed interest in a common BRICS currency.
The strategy shifted after US President Donald Trump threatened 100% tariffs against countries attempting to challenge dollar hegemony in global trade.Brazilian officials now emphasize that their plan focuses on payment facilitation rather than currency replacement.
The blockchain initiative builds upon Brazils successful domestic digital payment system, Pix.Trade Without Dollars: Brazils Blockchain Plan for BRICS Nations.
(Photo Internet reproduction)Launched in 2020, Pix revolutionized financial transactions in Brazil and could serve as a model for interconnected BRICS payment systems.
The country also plans to expand its Local Currency Payment System currently operating with Argentina, Uruguay, and Paraguay.Economic Cooperation and Technological InnovationBRICS has grown significantly beyond its original five members.
The bloc now includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran.
Nine additional partner countries complete the alliance: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan.Together, these nations control 42% of global foreign exchange reserves and represent approximately 37% of world GDP.
This economic weight gives significance to any financial initiatives the group undertakes.Brazils Foreign Minister Mauro Vieira stressed that the initiative works in favor of cooperation and development of its membersnot against anyone.
The upcoming BRICS Summit, scheduled for July 6-7 in Rio de Janeiro, will address this payment system alongside other priorities.Brazil has established five key goals for its presidency: facilitating trade and investment, regulating artificial intelligence, tackling climate change, strengthening public health cooperation, and developing BRICS institutions.The blockchain proposal offers BRICS members a technological path to reduce sanctions vulnerability while maintaining financial sovereignty in an increasingly multipolar economic landscape.