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The Economic Gravity Center swings south and Beijing when Moscow wants to dictate the pace. Based on the BRICS Summit in Rio, Vladimir Putin and XI Jinping, they formalize an unprecedented initiative: a common investment platform dedicated to the countries of the global south. This announcement, the idea of influence and emancipation from the districts, dominated by the West, represents a key step in the construction of the alternative financial rules piloted by developing powers.
In short
- Vladimir Putin and Xi Jinping are preparing to launch the BRICS investment platform dedicated to the country of the global south.
- The project, revealed by the Kremlin, will be officially introduced at the BRICS Summit in July in Rio de Janeiro.
- The aim of this platform is to offer an alternative to financial institutions dominated by the West, such as the IMF or the World Bank.
- The first information shows the priority of targeting the economies of South Asian, Africa and Latin America.
BRICS project: Investment Platform for South Global
While the dollar hegemony ends, the new investment platform launched in the Moscow initiative and supported by Beijing designed for global south is being prepared within BRICS. He was Yuri Ushakov, a diplomatic advisor to Vladimir Putin, who revealed the outlines in the statement:
The heads of state will deal with the question of promoting Russian initiatives carried out at the British Summit in Kazan last year. These initiatives mainly concern the new investment platform.
This project, whose details should be revealed at the peak of BRICS in July in Rio de Janeiro, is part of the reported desire to offer an alternative economic framework for developing countries.
The elements already known at this stage are as follows:
- The origin of the project: for the first time Vladimir Putin at the Brics de Kazan summit in 2024;
- Display Objective: offer new investment options “For our countries and partners between representatives of global south”;;
- Action area: priority focus of economies of South Asian, Africa and Latin America;
- Geopolitical range: Possible opening for BLOCS BLOCKS, in the logic increase in influence on south-south;
- Calendar: The official presentation is expected at the beginning of July at the Rio summit.
On this platform, BRICS intends to strengthen their economic cooperation and attack the hegemony of Western financial institutions. For Moscow like Beijing, this is another step towards global multipolar economic order controlled by developing powers.
Towards disconnecting from Western financial districts and digital tools?
In addition to the projects shown, the platform project provokes global reorientation of global financial architecture. Putin insisted on the need to design a safe investment channel “Without involving third countries” This reflects an explicit desire to circumvent systems dominated by the dollar and Western financial centers.
If the technical methods have not yet been set, digital dimensions seem to be expected. Indeed by the statement of Vladimir Putin “Digital Asset”He could play a role in this structure that would facilitate capital transfers to developing markets.
This opening on Kryptos opens the way to a number of hypotheses: project tokenization, intermediate infrastructure of blockchain, or even eventually the formation of a common settlement of the asset. None of this has been confirmed, but the context is useful.
BRICS have been thinking for several years of creating a common currency or alternative system of compensation and this investment project could be a prelude.
If geopolitical ambitions are clear, the economic consequences remain to be measured. This platform could strengthen the attraction of the BRICS block for countries in the south in the search for funding and at the same time accelerate the fragmentation of the international monetary rules, as evidenced by the transition to local currencies. Summit Rio will be crucial. He will say whether this vision will remain a statement of the intention or if it is quickly converted into functional architecture.
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A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.