BRICS Payments vs. Crypto Payments: The Real Elephant in the Room
There has been a lot of speculation around the BRICS payment system and why it hasn't officially launched yet, despite years of anticipation. It raises the question: why the delay? Could it be due to geopolitical realities, such as China holding significant U.S. debt and needing to maintain some level of trade relations? The broader context of global finance, with countries like Russia already legalizing cryptocurrency as legal tender, further complicates the narrative.
What’s clear is that blockchain-based payments are quietly but steadily gaining ground, with USDT (Tether) being widely used in Russia, particularly as the country adapts to sanctions and the shifting dynamics of global commerce. In fact, Russia’s recognition of crypto as a legitimate currency speaks volumes about the shifting paradigm of money and payments.
But how would the BRICS payment system differ from existing crypto solutions? This is where the conversation becomes interesting. BRICS nations have discussed the idea of a common currency to facilitate trade among member countries, reducing reliance on the U.S. dollar. In contrast, blockchain-based payments like Bitcoin or USDT offer decentralized and global solutions that are not tied to any one country or political agenda.
The U.S. Congress, meanwhile, is starting to take notice of crypto’s role in global finance, with lobbying efforts underway to allow banks to custody Bitcoin. This signals the growing recognition that crypto is not a fringe concept but a central player in the future of financial systems. However, amid all this noise, it's essential not to get distracted by the surface-level developments. The real elephant in the room is the potential of blockchain technology itself to reshape global finance, including the BRICS system.
Blockchain offers something traditional financial systems cannot: decentralized, transparent, and borderless transactions. It has already begun changing the way people in restricted economies and countries with failing currencies interact with money. While BRICS might be positioning itself as an alternative to Western-dominated financial systems, we must question whether a centralized BRICS payment system could ever truly compete with the inherent advantages of crypto.
As countries like Russia and others in BRICS explore their options, it’s likely that crypto will remain a vital tool for cross-border transactions, regardless of official payment systems. The fact that the U.S. is actively looking to regulate and integrate Bitcoin into its financial systems underscores the importance of paying attention to blockchain-based solutions.
Rather than getting caught up in whether BRICS payments will succeed or how much U.S. debt China holds, we should focus on the transformative power of crypto. In this evolving landscape, decentralized solutions might ultimately prevail, offering a way forward for countries seeking independence from dominant currencies.
The future of global payments is unfolding before our eyes, and blockchain is at the heart of this transformation. We shouldn’t be distracted by the politics or delays. The real story lies in the technology that’s already revolutionizing how we view money and value. Keep your eye on blockchain—it’s not just the future, it’s already here.
