A block within a block. Two BRICS+ countries, Russia and India, have agreed to create a joint “digital economy”. What does this mean and what to expect?
Russia and India want to create a common digital economy
The news was announced after a visit by a delegation from Moscow during the Smart Cities India event held in New Delhi from January 17 to 19. Sergey Cheremin, member of the Economic Cooperation Council with India, spoke at the opening of the conference: This underlines the already strong bond between Russia and India :
“We are united by a common goal: the creation of state-of-the-art infrastructure. […] One of the most promising areas of our cooperation is undoubtedly Information technologies and the digital economy.»
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Sergey Cheremin believes that by combining the forces of the two territories, a “Synergy effect“so that Russia likes India become “leader in this sector». Discussions focused on integrating innovative technologies – including artificial intelligence – to improve public services, particularly with the implementation of the “Smart city“.
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A common digital economy within the framework of BRICS+?
If this was a letter of intent, it is anything but anonymous. In fact, the eyes of the world have been on the BRICS+ countries since last year. The latter was particularly vocal in his criticism of the legacy of Bretton Woods and the dominance of the American dollar.
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The “dedollarization” process that has begun will therefore potentially be based on digital currencies. A few months ago we gave loans to BRICS+ countries a common digital currency or even cryptocurrency project. If the group appears to have moved away from that, the recent announcement shows that the idea may not have been entirely buried.
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A long-term development for India and Russia
Additionally, Indian Prime Minister Narendra Modi called for the democratization of cryptocurrencies and digital assets last summer:
“Rapid technological change is a reality – there is no point in ignoring it or wishing it would go away. Instead, we should concentrate on acceptance, democratization and a unified approach.»
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Vladimir Putin, in turn, rejected the idea of a BRICS+-specific digital currency last October, but also called for a joint approach:
“At this point in time, we do not have to create a single currency for the BRICS countries We need to establish a settlement systemCreate financial logistics to ensure payments between our states and switch to payments in national currencies.»
So this will be the case one of the biggest challenges facing the global economy in the coming years.
Source : BRICS TV
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