On March 14, the Brazilian media O Globo revealed that Brazil has just proposed to apply blockchain technology to simplify international financial transactions between BRICS member countries. This proposal will be one of the top priorities of Brazil during its one-year rotating presidency, starting from January 2025.

Unlike the previous idea of creating a common currency for BRICS, this latest proposal does not aim to establish a currency unit to replace the USD in international trade. Instead, the main goal is to improve the efficiency of cross-border transactions using blockchain technology, leveraging the instantaneity and programmability of cryptocurrencies. In this regard, stablecoins have been widely used in many informal transaction activities.

One of the prominent initiatives to integrate blockchain into the traditional financial system in Brazil is the Drex pilot project of the Central Bank of Brazil (BC). Drex is building a financial asset tokenization infrastructure, including applications for cross-border transactions. However, the project faces a major challenge in balancing the central bank's control rights and privacy in the decentralized digital environment.

If blockchain is not applied, another option is to develop an integrated payment system similar to Pix. However, this alternative raises concerns about governance and sovereignty among the participating countries.

By assuming the rotating BRICS presidency, Brazil may strongly promote blockchain-based solutions to improve the international financial system, opening up new opportunities for cryptocurrencies in the global trade domain.