Five top banks from each BRICS member state have joined together to advance distributed ledger technology. The banks have inked a Memorandum of Understanding (MoU) to take the matter forward.
Top banks from the emerging economies (Brazil, Russia, India, China and South Africa) took part in the 10th International BRICS Summit in Johannesburg, between July 25 and July 27.
During the meeting, the banks agreed to conduct a joint study of DLT technology like blockchain, “in the interests of the development of the digital economy.” The annual event gives a chance for the BRICS countries to discuss economic, cultural, and political cooperation between member states and take necessary initiatives.
The banks which will participate in the study are State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconom bank, Russia), the Brazilian National Bank for Economic and Social Development (BNDES), the Export-Import Bank of India, the China Development Bank, and the Development Bank of Southern Africa (DBSA).
According to the official press release, economic cooperation is the main objective of 10th BRICS Summit “in the face of the fourth industrial revolution.”
Commenting on the MoU, Mikhail Poluboyarinov, First Deputy Chairman and a Member of the Board at Vnesheconombank, said
“The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”
Several countries in Africa have taken initiatives in blockchain technology. Zimbabwe, which has a hostile approach towards cryptocurrencies, is the latest to enter the fray. The Reserve Bank of Zimbabwe (RBZ) instituted a study of blockchain technology, with the final goal of implementing it in the financial sector. Regarding the initiative, RBZ governor John Mangudya stated that the bank would like to implement the technology and keep up with the latest blockchain innovations in other countries.
