BRICS Summit 2024: Countries Look to Blockchain to Counter US Dollar Hegemony

The 16th Annual BRICS Summit has officially started in Kazan, Russia, gathering some of the world’s most influential leaders.

Photo by GDJ on Pixabay

Key Leaders Attend BRICS Summit Amid Economic Challenges

Notable figures such as Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, and Chinese President Xi Jinping are participating in this significant event. The summit holds particular importance for Russia, which is currently grappling with substantial economic sanctions from Western nations.

Russia’s Strategic Objectives

Recent analyses indicate that Russia intends to leverage the BRICS Summit to highlight its geopolitical and economic resilience against Western pressures. Experts anticipate that Russia will advocate for the establishment of an alternative financial system and a payment network utilizing blockchain technology during discussions.

Originally composed of five rapidly developing economies—Brazil, Russia, India, China, and South Africa—BRICS has now expanded to nine members, with Egypt, Ethiopia, Iran, and the UAE recently joining. Saudi Arabia, currently attending as an invitee, is expected to become an official member soon.

The Significance of BRICS

The relevance of this coalition can be understood through two critical aspects: population and economic strength. Collectively, BRICS accounts for approximately 45% of the global population and nearly 28% of the world’s economic output.

This summit is particularly crucial for Russia as it seeks to challenge the authority of Western-dominated institutions like the International Monetary Fund (IMF) through BRICS. Moscow is likely to advocate for a blockchain-based digital currency system supported by national currencies, potentially diminishing the US dollar's influence and enabling BRICS nations to transact independently of American currency.

Addressing Economic Sanctions

For Russia, this initiative serves both political and economic objectives, aiming to circumvent the sanctions imposed following its invasion of Ukraine. If successful, the proposed payment system could complicate efforts by Western nations to disrupt Russia’s trade ties with BRICS countries.