BRICS nations sign MoU to study Distributed Ledger Technology, as a part of their bigger strategy to improve the cooperation regarding the economic development among the member states.
27 July, AtoZ Markets – Five banks from each of BRICS member nations have inked a Memorandum of Understanding (MoU) concerning the development of distributed ledger technology (DLT). According to the official press release following the 10th International BRICS Summit, which took place in Johannesburg, Brazil, Russia, India, China, and South Africa have agreed to join forces to study the DLT technology.
BRICS Nations Ink MoU to Study Distributed Ledger Technology
The press release noted that the effort comes “in the interests of the development of the digital economy.” BRICS members have held the annual summit starting from 2009 to overview and discuss ideas for economic, political, and cultural collaboration between countries.
The statement highlights that the banks that will participate in this study are the Russian State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank), the Brazilian National Bank for Economic and Social Development (BNDES), the Export-Import Bank of India, the China Development Bank, and the Development Bank of Southern Africa (DBSA).
The key purpose of the 10th BRICS Summit was the cooperation regarding the economic development “in the face of the fourth industrial revolution.” The First Deputy Chairman and a Member of the Board at Vnesheconombank, Mikhail Poluboyarinov, has commented on the MoU:
“The current agreement allows the development banks of BRICS countries to study the applications of innovative technologies in infrastructure finance and bank products optimization.”
Global Banks Explore Blockchain
Earlier this month, the Reserve Bank of Zimbabwe (RBZ) has commenced its own study regarding the Blockchain technology. The primary goal of this initiative was the integration of the technology into the bank’s business processes. The governor of RBZ, John Mangudya, stated that the bank intends to get a hang of Blockchain technology in a bid to keep up with the latest banking innovations in other states.
In the meanwhile, global banks are exploring a number of use cases and application for the Blockchain technology. Just last week, the Bank of America (BoA) has filed for a patent that features a Blockchain-based system. The system would enable the external validation of data.
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