Leveraging Blockchain for Cross-Border Payments in the BRICS Nations

Abstract

Cross-border payment systems among the BRICS countries—Brazil, Russia, India, China, and South Africa—face persistent challenges, including high transaction costs, lengthy settlement times, dependence on intermediaries, limited transparency, and currency conversion inefficiencies. These barriers can increase the financial burden on businesses, particularly small and medium-sized enterprises (SMEs), as well as individuals engaged in international transactions. Blockchain technology offers a decentralized, secure, and transparent alternative that could improve the efficiency of cross-border payments by reducing intermediaries, automating transaction processes, and enabling faster settlement. This study investigates the potential of blockchain technology to streamline cross-border payments among BRICS nations using a mixed-method approach. Quantitative analysis examines transaction costs and payment processing times, while qualitative analysis incorporates insights from industry experts concerning technological, regulatory, and operational factors. The findings indicate that blockchain-enabled payment solutions could potentially reduce settlement times from several days to less than one hour and decrease transaction fees by up to 60%. Blockchain may also strengthen financial inclusion by improving access to affordable international payment services for SMEs and underserved populations. However, regulatory harmonization, interoperability, cybersecurity, technological readiness, and institutional cooperation remain significant challenges. The study recommends coordinated regulatory frameworks, common technical standards, pilot projects, and investment in digital infrastructure to support responsible adoption while maintaining financial stability and compliance.