The ongoing BRICS 2024 summit in Kazan sees member countries—including Brazil, Russia, India, China, and South Africa—discussing the use of cryptocurrency and central bank digital currencies (CBDCs) as part of a larger de-dollarization strategy. Amid increased U.S. financial sanctions, these nations are exploring ways to lessen dependency on the dollar in international transactions.
Russia’s m-Bridge Initiative: Reducing Dollar Dominance in Cross-Border Payments
A central theme at this year’s summit is Russia’s m-Bridge project, which employs CBDCs to facilitate cross-border transactions between the nations. The initiative’s goal is to create a settlement infrastructure that reduces the dollar’s dominance in international finance by enabling direct payments between BRICS economies. If successful, m-Bridge could support de-dollarization while overcoming challenges of organizational governance and regulatory frameworks.
Despite progress, BRICS countries still rely heavily on the dollar, with around 47% of cross-border transactions conducted in the currency. However, ING analysts report that the BRICS share of global foreign exchange cross-border claims has increased, signaling a potential shift towards alternative currencies.
Putin’s Call for Alternatives to the Dollar
Russian President Vladimir Putin spoke candidly at the summit, criticizing the dollar’s weaponization in global politics and advocating for alternative financial systems. His statement underscores the growing push within BRICS to establish payment infrastructures independent of Western control. In line with this, Russian lawmakers are encouraging domestic Bitcoin miners to sell their mined crypto to international buyers, promoting the use of crypto assets in global trade.
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Strengthening Crypto and Technology Infrastructure
BRICS members are also advancing crypto-related projects to enhance financial independence and digital infrastructure. Russia’s partnership with BitRiver and the Russian Direct Investment Fund (RDIF) is a notable example, with plans to create AI and crypto data centers across BRICS countries. These initiatives align with Russia’s recent regulations on crypto mining, introduced in August 2024, which provide legal clarity for crypto miners and data centers. This partnership seeks to reduce reliance on Western technologies by boosting regional computing power.
The 2024 BRICS summit has highlighted significant initiatives in the crypto and CBDC spaces as tools for de-dollarization. While Russia’s m-Bridge and related digital projects aim to diminish the dollar’s role in international finance, they also signal the bloc’s broader push for self-sufficiency and technological advancement. With growing de-dollarization momentum, BRICS nations may reshape global financial dynamics by strengthening their cross-border payment systems and investing in decentralized financial infrastructure.
As BRICS continues to expand its influence in crypto and fintech, the summit’s outcomes could mark a pivotal shift in the future of global finance.
