BRICS, a developmental collective formed of five developing countries, namely Brazil, Russia, India, China, and South Africa, have all entered stages of legitimising cryptocurrency practices through legislation. Brazil has become the latest of the BRICS countries to begin discussions around legislation, while Russia, China, and South Africa have all begun implementing their own respective cryptocurrency structures in recent weeks.
BRICS as a leader in developmental models
BRICS was formed in 2009 as a developmental organisation between five developing countries. Its aim is to support each other’s trade, industry, and structural developments. In the decade since its inception, BRICS countries have become rising success stories in their regions, and powerhouses of capital and stability.
The latest addition to these developmental structures has been the key mandate to legislate on cryptocurrency processes. Russia, China, and South Africa, who have all started legislating on cryptocurrency, have noted that one of the driving forces behind this standardisation is to inhibit malfeasance in the cryptocurrency markets through institutionalised oversight. Additionally, it also provides the state with much needed income in the form of tax. Like standardised property and products, cryptocurrency may now be under the same rules in the Law of Succession.
Cryptocurrency in the developing world
The importance of BRICS legitimising cryptocurrency schemes goes far beyond the borders of the five BRICS countries. The developing world in general is seeing a sharp increase in interest and usage of the cryptocurrency market. BRICS countries, meanwhile, could prove to be hubs of innovation for their respective developing regions.
Africa as a whole has seen a drastic surge in cryptocurrency use as an alternative form of finance. Mexico, Brazil’s regional partner, has also experienced a state-sanctioned official policy towards cryptocurrency introduced. There is also popular trust in the innovative cryptocurrency market in the country.
BRICS will play a crucial role in the advancement of the developing world as leaders of the global cryptocurrency market.