The BRICS intends to create a single cryptocurrency for payment and settlement between member states

According to a report by Cointelegraph on November 15, an official of the recent BRICS summit showed that the member states of the organization discussed the issue of creating a new cryptocurrency at the summit.

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On November 14, Russian financial news agency RBC reported that the Director of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev, said that the 12th year of the BRICS 2019 in Brazil At the summit, the BRICS Business Council supported the idea of ​​creating a single payment settlement system among member states.

Create a "BRIC" cryptocurrency?

According to reports, these member states – Brazil, Russia, India, China and South Africa – are planning to develop a single payment transaction system between member states, empowered by a "brick country" cryptocurrency yet to be developed. Dmitriev said:

“A highly efficient BRICS payment system can stimulate the settlement of the currency of member countries and ensure the stability of settlements and investments among member states, which account for more than 20% of global FDI inflows.”

The head of the RDIF pointed out that in the face of increasing non-market risks in the global payment infrastructure, the development of a single payment system and its integration will have an important impact on “building a BRICS economic partnership”.

The BRICS Annual Summit will continue to focus on strengthening member states’ solidarity in science, technology, innovation and the digital economy, and promoting cooperation in combating organized crime, money laundering and drug trafficking.

The German Banking Association proposes to create a digital euro

The BRICS member states are not the only countries considering a new cryptocurrency. At the end of October, the Bank of Germany Association (Bankenverband) submitted a submission that raised several reasons for creating a digital euro.

The banks said they should create a digital euro based on encryption technology while establishing a common pan-European payment platform:

“Users of the digital euro – whether human or machine – must be clearly identified. This requires a European, or more broadly, global identity standard. For each form of digital currency, Adopting a standard for identifying customers, this standard should be as strict as the standards applicable to banks and other obligatory entities in combating money laundering and terrorist financing under the current legal framework."