Summary: Brazil is prioritizing blockchain to streamline BRICS cross-border trade during its presidency of the bloc, moving away from past discussions about a joint currency. The focus is on improving transaction efficiency rather than challenging the U.S. dollar, especially as concerns over potential trade tariffs grow. Brazil’s central bank has been testing Drex, a tokenized financial infrastructure, though regulatory and privacy hurdles remain.
Brazil appears to be pushing for blockchain-based improvements in BRICS trade, potentially making it a key priority during its year-long presidency of the bloc, which started in January. According to Brazilian newspaper Valor Econômico, the country is shifting focus from discussions about a common BRICS currency to enhancing transaction efficiency.
YOU MIGHT ALSO LIKE: Pi Network Fans vs. Binance: Fake News Sparks Drama Over Exchange Listing!
Sources close to the talks suggest that Brazil has no plans to create a currency that could compete with the dollar. This comes as former U.S. President Donald Trump has threatened heavy tariffs on nations attempting to move away from the American currency.
YOU MIGHT ALSO LIKE: XRP to $10? Analyst Egrag Crypto Says It’s Closer Than You Think!
Instead, the strategy may involve integrating blockchain into Brazil’s financial system. The country’s central bank has been testing Drex, a project designed to create a tokenized infrastructure for financial transactions. However, the initiative faces challenges in maintaining both privacy and regulatory compliance.