PROMOTING BRICS ECONOMIC INTEGRATION VIA CENTRAL BANK DIGITAL CURRENCIES
The COVID-19 pandemic and consequent economic crisis have altered global trade. One of the profound changes has been the shift towards digital payments. With this shift, Central Bank Digital Currencies (CBDCs) are rapidly gaining ground, with all BRICS nations researching or adopting such options. The CBDC offers great opportunities to promote financial inclusion while disrupting the traditional banking architecture in these countries. The new financial infrastructure could also promote cross-border financial services but depends on countries recognising the need to promote integration and currency interoperability. There is a need for focus, planning and coordinated action by Central Banks, and financial institutions of BRICS countries that require the involvement of international standard institutions. As the BRICS develops these currencies in test environments, it is important to collate the research that addresses interoperability and international exchange issues.
To this end, this symposium serves to share the findings of a recent study prepared by Nelson Mandela University and Zhejiang University’s International Business School into CBDC-driven BRICS economic integration. The study highlights the motivation behind CBDC Trade Integration, a technical solution for its implementation and the socio-economic implications for BRICS.