Author: Jagdish Kumar, India
The group of five largest emerging economies, the BRICS group during the 10th annual meeting in Johannesburg, South Africa has announced that they will be researching on how Blockchain technology can be used.
The development banks of Brazil, Russia, India, China and South Africa signed a memorandum of understanding (MoU) looking to see if and how distributed ledger technology (DLT) can help them in the new digital era, also known as 4th industrial revolution.
In a statement release by the Russia’s Vnesheconombank (VEB) revealed that State Corporation Vnesheconombank, Banco Nacional de Desenvolvimento Econômico e Social-BNDES, Export-Import Bank of India (Exim Bank), China Development Bank (CDB), and Development Bank of Southern Africa Limited (DBSA) signed the agreement on collaborative research on distributed ledger and blockchain technology in the context of the development of the digital economy.
Speaking on this, First Deputy Chairman – Member of the Board of Vnesheconombank Mikhail Poluboyarinov said, “Vnesheconombank works with the development banks of BRICS countries in a range of key areas, including financial cooperation, developing credit financing in national currencies and implementation of innovations.
The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization, Poluboyarinov added.
The statement also said that each country will decide how will participate in the research as they have different approaches towards crypto.
In 2010, BRICS set up an Interbank Cooperation Mechanism to initiate cooperation agreement among state export and financial development institutions of the BRICS countries.
During the 2018 bank meeting theme on how to offer inclusive growth and shared prosperity in the 4th industrial revolution among BRICS nations.
It is very important to see how things go from here, as India has already banned trading of Blockchain based cryptocurrencies and asked all the banks to stop dealing with companies and individual involved in cryptocurrency sector.
China on the other hand has imposed a full ban on digital coin trading last year, while Russia on the other hand