A new research paper out of Russia proposes the future of the international monetary and financial system. The country is the current chair of BRICS which is meeting next week. One of its proposals is a CBDC and DLT system to support local currency payments. While the paper makes some interesting points, the mixture of fact and propaganda undermines the document’s gravitas. The document was authored by the Ministry of Finance, the Bank of Russia and Yakov and Partners.
In January BRICS expanded its membership from the original five members — Brazil, Russia, India, China, and South Africa — with the addition of Iran, Saudi Arabia, the UAE, Ethiopia, and Egypt.
In terms of cross border payments, the Russian proposal is to develop a cross border payment infrastructure that is at least as cost efficient and fast as current systems. More importantly, it wants a “System based on mutual dependency, rather than centralized decision-making by a single entity.” It added that it must ring-fence participants from sanctions.
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