Establishing a single payment system for the participating countries, Kirill Dmitriev, the president of the Russian Direct Investment Fund (RDIF), proposed the formation of a shared cryptocurrency on the sidelines of the Brics summit, which was held in Brazil in the middle of November. The idea of a unified payment system has already received support from the Brics Business Council, according to RBC. The parties involved engaged in a heated discussion about adopting a single digital currency for payment purposes.
Since the early 2010s, cryptocurrencies, sometimes known as virtual currencies, and the blockchain technology that powers them have been significant phenomena in the information technology industry. Blockchain technology is seen as revolutionary by experts because it involves a distributed electronic database (a register or ledger) in which each “cell” stores data about every other cell. The “registry” is kept secure and operational via cryptographic techniques.
Blockchain technology is effective in industries with many participants who cannot independently confirm the legitimacy of counterparties due to its distributed, decentralized nature and the availability of information about all transactions.The only person who can block (or temporarily seize) resources exchanged via a blockchain is their owner. The credibility of all private and corporate cryptocurrency ventures, however, continues to be a significant issue.
The majority, if not all, issues that private cryptocurrencies encounter can be resolved if a digital currency is issued by the state or a community of states. The benefits of Bitcoin and its underlying blockchain technology are kept in this situation. The dangers—such as the anonymity and ease of unregulated cross-border transactions—that worry governments worldwide are eliminated.The issue of cryptocurrencies would allow the government to take control of technology that would otherwise strengthen global speculators and even, in the opinion of detractors, threaten the very existence of governments in their traditional form.
Many nations’ capitals have been closely monitoring the US government’s rising anxiety over the potential worldwide spread of cryptocurrencies. The main concern in Washington is that the “enemies of America,” whether they be governments or non-state groups, would be able to establish a financial system that is not reliant on the US currency. In this scenario, the United States would forfeit its most crucial non-military tool for applying pressure to its adversaries.
Currently, dollars are used in more than 85% of all currency exchange operations. Washington only needs to add suspect people, groups, or nations to the “blacklist” distributed to all banks worldwide to stop undesirable financial activities. The vast majority of financial institutions have, until now, been following the directives of the US authorities out of fear of being subject to sanctions or losing the ability to make payments in dollars. Republican Brad Sherman proposed a May measure forbidding US citizens from purchasing or trading cryptocurrencies.
Original Source Link