BRICS: China Unveils Blockchain Project to End US Dollar in Trade

China Unveils Blockchain Project to End US Dollar in TradeChina has proposed a blockchain-based payment system for BRICS nations to reduce reliance on the US dollar in international trade. The move is seen as a challenge to the dominance of the US dollar in global finance.The proposal was unveiled at the BRICS summit in Xiamen, China, on September 4, 2017. The BRICS nations are Brazil, Russia, India, China, and South Africa.The proposed system would use blockchain technology to create a secure and transparent platform for cross-border payments. This would reduce the need for intermediaries, such as banks, and would lower transaction costs.The system would also be open to other countries that are not members of BRICS. This would create a more inclusive global financial system.The US dollar has been the dominant currency in international trade for decades. However, there has been growing dissatisfaction with the US dollar's dominance, particularly among emerging market economies.China's proposal is a significant step towards reducing the reliance on the US dollar in international trade. If successful, it could lead to a more balanced and stable global financial system.Benefits of the Proposed SystemThe proposed blockchain-based payment system would have several benefits, including: Reduced transaction costs: The system would eliminate the need for intermediaries, such as banks, which would lower transaction costs. Increased transparency: The system would be based on blockchain technology, which is a secure and transparent ledger. This would increase transparency and reduce the risk of fraud. More inclusive: The system would be open to all countries, regardless of whether they are members of BRICS. This would create a more inclusive global financial system.Challenges to ImplementationThere are several challenges to implementing the proposed blockchain-based payment system, including: Technical challenges: The system would require a significant investment in technology and infrastructure. Regulatory challenges: The system would need to be compliant with the regulations of all participating countries. Political challenges: The system could be seen as a challenge to the dominance of the US dollar, which could lead to political resistance.Despite these challenges, the proposed blockchain-based payment system has the potential to revolutionize international trade. If successful, it could lead to a more balanced and stable global financial system.

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