BRICS countries mull use of single cryptocurrency for settlements - RDIF head

TASS, 14.11.2019

BRICS countries can start using a single cryptocurrency as a tool for settlements, such an initiative was announced at the BRICS Business Council, head of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev, told reporters.

"BRICS countries are reducing the share of settlements in dollars. In Russia, over the past five years, the dollar’s share in foreign trade has decreased from 92% to 50%, while the ruble’s share has grown from 3% to 14%. As the Chairman of the financial services working group at BRICS Business Council, RDIF participated in the discussion of the possibility of using a single cryptocurrency for settlements between the member countries. Such settlements should be carried out through the BRICS payment system, the creation of which is now also actively discussed," Dmitriev said.

At the meeting, creation of a single payment system within the framework of BRICS was discussed, Dmitriev said.

"The development of national segments of payment systems and their sustainable integration are an important factor in economic partnership between the BRICS countries in the face of growing non-market risks of the global payment infrastructure. As the Chairman of the financial services working group at BRICS Business Council, RDIF discussed the creation of the BRICS payment system. The members of the Business Council supported the idea," Dmitriev said.

According to him, an efficiently operating BRICS payment system is able to stimulate settlements in national currencies and ensure stability of settlements and investments between the BRICS member countries, which form more than 20% of the global inflow of foreign direct investment.

The participants of BRICS Business Council meeting also discussed the establishment of an international arbitration court as part of BRICS.

"Globally, arbitration courts are facing the growing number of disputes on investments and the creation of a permanent arbitration institution at the international level involving all BRICS countries will ensure its true independence in a situation where state courts in the world are increasingly losing their independence and are becoming hostages of political circumstances," Dmitriev explained.

The BRICS arbitration court can be created on the basis of an international convention, any state can join, the Russian official added.