BRICS Banks To Explore Blockchain Technology
Five leading economies around the world, including South Africa and China, are collaborating on a joint effort to further look into the founding technology of cryptocurrencies, blockchain-tech.
As a new effort established on the 26th of July, at the yearly meeting in Johannesburg, the new group is dedicated to studying the applications of blockchain technology and how it applies to the current digitizing planet. The VEB in Russia also said that this would be the 4th industrial revolution as DLT continues spreading like wildfire.
The blockchain is developed as a distributed ledger technology and has quickly spread its applications throughout the industrial world separate from the current global cryptocurrency world. Several features the new tech offers are facilitating accelerated transactions through utilizing automated digital contracts and provide wide transparency as a means of monitoring every activity.
The VEB is collaborating with BRICS’ banks and covers several vital sectors. Among them being business collaborations and introducing credit financing systems into native currencies and provide innovations. The VEB’s DC directors board member, Mikhail Poluboyarinov said that the new arrangement permits development banks belonging to the BRICS to research and explore emerging technology and innovations within finance and banking products.
Several development banks are also joining in on the effort, including Exim Bank, CDB, and DBSA. The new agreement is a conjoint effort by all five nations involved and is by no means mandatory.
The five countries will individually decide on the research methods and contributions given the wide array of operating within each country. In 2017, China banned all cryptocurrency trading within the country and the RBI has also shut down and barred any crypto-related activity with banks. Russia is currently exploring and developing a new cryptocurrency law to legalize related companies.