Russian Senate Chairman Profiles Use of National Digital Currencies in BRICS Payment System

Valentina Matvienko, Chairman of the Russian Federation Council, recently assessed the role that national digital currencies, also known as central bank digital currencies (CBDCs), would play in organizing a hypothetical BRICS joint payment system.

Valentina Matvienko, Chairwoman of the Russian Federation Council, has highlighted the potential role of national digital currencies (CBDCs) in boosting the use of national currencies in trade among BRICS countries. Speaking at the X BRICS Parliamentary Forum in St. Petersburg, Matvienko noted that the integration of digital currencies into a joint BRICS payment system could facilitate decentralized trading transactions.

According to Matvienko, the use of national currencies among BRICS countries has been increasing, and Russia is keen on enhancing the efficiency, safety, and volume of these transactions. She pointed out that Western sanctions have led to a significant reduction in the use of “toxic currencies,” which has been halved over the last year.

The Federation Council Chairwoman stated that if the efforts of BRICS representatives culminate in the creation of a payment system, like the BRICS bridge, these instruments could be utilized to enable decentralized trading transactions. This implies that “none of the participants will be able to restrict the actions of the others.”

“In this case, digital currencies of the central banks of the association countries can be used, the rate of which will be tied to the value of national currencies,” Matvienko explained.

However, she noted that achieving this outcome will require concerted legislative efforts to introduce the circulation of these currencies within BRICS countries and regulate their use in cross-border payments.

Recently, Nasser Kanani, Spokesman for the Ministry of Foreign Affairs of the Islamic Republic of Iran, proposed merging all existing payment systems of BRICS nations, which also include Brazil, Russia, India, China, South Africa, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).

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