PANews reported on March 14 that according to Brazilian media O Globo, Brazil plans to simplify international financial transactions of import and export contracts between BRICS member countries by using blockchain technology. This issue will be one of the priorities during Brazil's rotating presidency. Brazil's rotating presidency will start in January 2025 and last for one year. The proposal is different from the previous idea of creating a common currency for BRICS countries. Sources said the move is not aimed at creating a standard transaction currency for foreign trade that competes with the US dollar. The focus this time is on improving the efficiency of international transactions, which can be achieved through a technology that is closer to the immediacy and programmability of cryptocurrencies, and stablecoins are already widely used in informal settings.
One of the main practical initiatives to introduce blockchain into the regulated traditional financial system is the Central Bank of Brazil (BC) pilot project Drex. The project creates a tokenized infrastructure for trading financial assets. One of the use cases that Drex is working on is cross-border transactions. However, the project faces a dilemma of how to ensure the control of the Brazilian central bank over transactions while maintaining privacy in a decentralized digital environment. If blockchain technology is not adopted, another option is to create an integrated network system similar to Pix. However, this approach raises concerns about the governance and sovereignty of the countries involved.
