China announces blockchain project to end US dollar trade

In conjunction with BRICS de-dollarization efforts, China has announced a blockchain infrastructure project to further end the use of the US dollar in ongoing trade relations. Indeed, this ambitious project aims to enhance the ongoing Belt and Road trade initiative through technology.

Despite the country’s cryptocurrency ban, the BRICS alliance has been accepting digital assets throughout this year. China has had great success with its digital renminbi and is working to increase the currency’s penetration in ongoing trade relations. Ultimately, this move should provide further exposure to the blockchain and de-dollarization aspects of global finance.

US Dollar Chinese Yuan Currency BrickUS Dollar Chinese Yuan Currency Brick
Source: AFP

Also read: After BRICS, 3 new countries ready to issue their own currencies

China announces Belt and Road Initiative blockchain project as it further abandons US dollar in trade

Throughout the past few years, the BRICS economic union has been working on de-dollarization. Trade relations between the two countries are seen as open to the use of local currencies amid growing concerns about possible Western sanctions and the dollar’s continued reliance on fragile states.

Now, that may be further demonstrated through recent actions. In fact, with the BRICS strategy, China has announced a new blockchain project to end the US dollar in trade relations. Specifically, the country plans to implement blockchain technology in its Belt and Road Initiative.

Shanghai Treemap Blockchain Research Institute announced this project through its WeChat account. Additionally, cooperative support from many institutions was noted. These include Shanghai Jiao Tong University, Fudan University, Shanghai Maritime University, China Academy of Information and Communication Technology, etc.

Also read: 3 US sectors will be affected if BRICS dumps dollar

The project seeks to approach the Belt and Road Initiative, which requires requirements through cross-border blockchain infrastructure. Moreover, its implementation should allow blockchain projects to function among a large number of participating countries.This will ultimately enable monitoring cooperation by stakeholders.

This development is another aspect of China’s blockchain efforts on a global scale. Although they still ban trading and ownership of cryptocurrencies, they have embraced their potential in global finance. That belief is widespread throughout the BRICS bloc.

With the announcement of the BRICS blockchain-based payment system, many predict that the BRICS native currency in development could become a digital asset. Indeed, China’s continued efforts in cross-border blockchain trade projects could help that goal.

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