As the BRICS nations convene for the 2024 summit in Kazan, cryptocurrency discussions are taking center stage, aligning with efforts to reduce reliance on the US dollar. With Russia spearheading initiatives to bypass Western financial systems, the summit’s agenda signals a shift toward a more diversified global currency landscape.

CBDCs and the Fight Against Dollar Dominance

One of the key strategies discussed is the use of central bank digital currencies (CBDCs) to facilitate cross-border payments, aiming to reduce the dominance of the US dollar in international trade. Russia’s m-Bridge initiative is at the forefront of these efforts, seeking to establish an alternative settlement infrastructure that could reshape global finance.

Despite ongoing efforts, BRICS nations still show a higher-than-average reliance on the dollar, with 47% of cross-border lending and international debt tied to it. However, according to analysts from ING, the share of BRICS currency in cross-border claims has risen to 15% in recent years, indicating gradual progress.

Putin Condemns Dollar “Weaponization”

Russian President Vladimir Putin criticized the dollar’s use as a political tool, urging BRICS members to explore alternatives. In response, Russia has been working to establish crypto-based settlement systems that bypass Swift, the widely used global payment system.

Crypto and AI Data Centers on the Rise

Additionally, Russia is advancing crypto infrastructure development through partnerships like BitRiver and the RDIF, which are creating crypto and AI data centers across BRICS countries. These moves reflect the coalition’s drive toward a self-sufficient and technology-driven ecosystem.

As the summit progresses, BRICS’ push for crypto and blockchain technology could herald a significant transformation in global financial systems.