In a strategic move aimed at furthering economic integration, Mikhail Myasnikovich, the Chairman of the Board of the Eurasian Economic Commission (EEC), has urged the BRICS nations, the Shanghai Cooperation Organization (SCO), and the Eurasian Economic Union (EAEU) to embrace the potential of digital currencies.
Speaking at the second Eurasian Economic Forum in Moscow, Myasnikovich proposed a collaborative approach towards the use of digital currencies and the establishment of a unified payment card system.
A common digital payment system: The next step for the BRICS?
Myasnikovich’s vision extends beyond merely advocating for a shared use of digital currencies. According to him, it’s high time for these economic powerhouses to pool their resources and launch a unified payment card system.
This proposition carries significant weight considering the EEC’s role in executing decisions and maintaining the treaties within the EAEU.
The initiative, if successful, could revolutionize the way transactions are conducted within and between these influential nations. It could also have substantial ripple effects, catalyzing a broader acceptance and application of digital currencies in global economies.
Myasnikovich’s call for joint action underscores the increasing importance and potential of digital currencies in reshaping the financial landscape.
The drive towards ‘de-dollarization’
This push towards a shared digital currency and payment system is not a stand-alone initiative. Rather, it’s part of a larger trend of increasing the use of national currencies for settlements among these economies.
Indeed, Myasnikovich highlighted that nearly 80% of settlements within the EAEU are already conducted using national currencies.
This emphasis on national currencies ties in with Russia’s ongoing ‘de-dollarization’ efforts. The Russian Federation and its allies, including the BRICS nations, have been gradually transitioning to payments in national fiats.
This move is seen as a strategic response to escalating geopolitical tensions with the West and sanctions following Russia’s military actions in Ukraine.
The BRICS, representing five of the world’s largest emerging economies, was formed in 2006 as a counterweight to the G7. Today, they hold the largest share of global gross domestic product (GDP), according to a recent study.
The SCO, known as the world’s largest regional organization in terms of territory and population, acts as an economic, political, and defense alliance. Meanwhile, the EAEU, formed in 2014 and currently including Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan, works towards fostering economic cooperation among member states.
Should these three economic behemoths heed Myasnikovich’s call and unite in their approach towards digital currencies and payment systems, it would mark a significant step towards a future where digital currencies play a central role in global financial systems.
