Blockchain Application Study Planned By BRICS Development Banks

Blockchain, News | July 27, 2018 By:

Five state-owned development banks from Brazil, Russia, India, China and South Africa have signed a memorandum of understanding (MoU) to research blockchain technology for international transactions and other products.

During the 10th BRICS summit in Johannesburg, South Africa, Russian development bank Vnesheconombank, the Brazilian Development Bank, the Export-Import Bank of India, the China Development Bank and the Development Bank of Southern Africa agreed to a joint study of blockchain in order to develop a digital economy.

Mikhail Poluboyarinov, First Deputy Chairman of Vnesheconombank, said that the Russian bank is already working with banks from each BRICS member state in a range of key areas, including financial cooperation, developing credit financing in national currencies and implementation of innovations.

“This joint work opens new opportunities for Russian exporters, operators of large industrial projects, recipients of investments,” said Poluboyarinov. “The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”

BRICS is the acronym coined by British Economist Jim O’Neill meant for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Since 2009, the BRICS nations have met annually at formal summits. The key theme of the 10th BRICS summit in Johannesburg is cooperation in economic development “in the face of the fourth industrial revolution.” In 2010, Vnesheconombank and China Development Bank initiated the development of the BRICS Interbank Cooperation Mechanism, which serves as a platform for multi-faceted engagement among member development banks, aimed at mutual resurgence and empowerment.