BRICS banks to develop a blockchain financial system to boost innovation

BRICS banks have signed a deal during its 10th annual summit Johannesburg to jointly research and develop blockchain and Distributed Ledger Technology (DLT) to create a modern digital economy.

The State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), the Brazilian National Bank for Economic and Social Development (BNDES), the Export-Import Bank of India, the China Development Bank, and the Development Bank of Southern Africa (DBSA) signed the agreement.

“We welcome the signing of the Memorandum of Understanding on Collaborative Research on Distributed Ledger and Blockchain Technology in the context of the development of the digital economy,” say the five BRICS nations in a joint statement. “We believe that this work will contribute to our cooperation in adapting to the evolving internet economy.”

READ MORE: Russian crypto regulation in works

The banks will seek ways to apply DLT and blockchain and other “innovative technologies to reconfigure in infrastructure finance and bank products optimisation”.

Vnesheconombank First Deputy Chairman Mikhail Poluboyarinov says his firm already collaborates with BRICS development banks in various areas, including financial cooperation, credit financing in national currencies and implementation of innovations.

READ MORE: China praises blockchain, aims to be global science centre

The theme of the summit was “Collaboration for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution”.

The chiefs of state say that “we affirm the value of implementing coordinated BRICS scientific projects aimed at promoting BRICS science, technology and innovation potential as a contribution to our combined efforts in addressing the challenges of the Fourth Industrial Revolution”.

South Africa is blockchain friendly

Of the BRICS countries, South Africa stands out as one of the top eight blockchain-friendly nations in the world. They hosted the Blockchain African Conference 2018 in March and its second largest retailer, Pick n Pay, accepts Bitcoin payments.

READ MORE: Brazil’s crypto carnival still in full swing despite volatility of currencies

The country also has a significant cryptocurrency exchange called Luno. The government delegates responsibility to its citizens to report all crypto transactions to the South African Revenue Service.