With the meeting of the BRICS countries being held today in the Russian city of Kazan, where the current member states will discuss how to get rid of the dollar in commercial transactions among the members of the BRICS group of ten, especially oil transactions by going far to financial technology or what is known as Fentech, this measure will free these countries from dealing in dollars as well as the Swift Swift payment method, with an increase in the number of countries wishing to enter the BRICS or had previously submitted an application to join up to 47 countries.
The elimination of transactions in the dollar will reduce the global reserve, which reached between 55% -58%, up from 72% in 2002, as this reserve was affected by geopolitical tensions and economic competition and the subsequent actions between the west on the one hand and Russia and China on the other, which began with the tight US restrictions on China during the Trump presidency, and finally the seizure by the United States of Russian assets estimated at 300 billion dollars after the war on Ukraine.
What financial technology will BRICS recommend to use at their meeting ? To answer this question, it is necessary to clarify this technology, in short, programs, mobile applications, computer and any other technologies that have been created to optimize and automate traditional modes of financing, business exchanges between companies and consumer transactions, which include everything from mobile and computer payment applications through the direct internet to blockchain networks or what is known as complex blockchainblockchain that includes encrypted transactions, blockchain is a technology that allows decentralized transactions without the participation of any government entity or other third-party organization, especially if It is supported by artificial intelligence and machine learning to reduce operational costs, increase the value offered to customers and detect fraud.
Therefore, through the digital currencies Bitcoin, Ethereum, Bitcoin, Ethereum and other popular cryptocurrencies, Blockchain technology will be used to process and record transactions securely, allowing this technology to ensure transparency and protect financial information and the identity of buyers and sellers of cryptocurrencies.
Through the clarification of financial technology, which will be recommended to be used by the BRICS countries through digital cryptocurrencies using blockchain, commercial exchanges will take place between these countries, the most important of which are oil exchanges, as mentioned earlier, and then there will be less dealing in the dollar and less information on monitoring global commercial and non-commercial movements through SWIFT, which also weakens the information available on everything related to financing, liquidity and payment instruments between countries, especially BRICS, which will be separated by following this procedure from the West, in addition to the inability to use this information to serve Western political and military aspects, such as the sale of arms between these countries, such as countries, strategic projects as well as supporting countries in direct conflict with the West and other financial exchanges using financial technology.
Expert, strategic and economic analyst
Engineer Mohannad Abbas haddadin
[email protected]
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