The BRICS member countries have pledged to collaborate on the development of distributed ledger technology (DLT). The agreement, which was signed by each country’s national banking institutions at the 10TH BRICS Summit in Johannesburg, sees the bloc venture into blockchain, in an effort to keep up with new trends and advancing technologies.
Distributed ledger technology (also known as the blockchain) allows for the decentralising of information and data for better security, archiving and easy access to information. Each country has been working on their own blockchain ideas but this is the first time they will be working jointly on the technology.
The banking institutions involved in the DLT project are: The Export-Import Bank of India, the China Development Bank, the Brazilian Nation Bank for Economic and Social Development (BNDES), Russia’s State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) and the Development Bank of Southern Africa (DBSA).
This is also part of the bloc’s partnership in the 4th Industrial Revolution, enhancing their development and cooperation in the digital economy. The agreement will aim to spur on the advancement of the banking sector to not only study the distributed ledger technology, but also to create new financial infrastructure.