- BRICS Pay is set to help the alliance reduce its reliance on the U.S. dollar in global business transactions.
- Russia is playing a crucial role in the development of BRICS Pay and is aiming to incorporate digital currency.
- The launch of the platform could potentially reshape the global financial landscape and challenge traditional systems.
The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, is gearing up to introduce a significant advancement in the realm of finance. The group is scheduled to unveil the BRICS settlement blockchain platform at its October 2024 summit. Announced in March, this platform aims to decrease dependency on the U.S. dollar for international transactions by establishing a new system that supports local currencies within BRICS nations.
Significance of the BRICS Pay System
The introduction of the BRICS Pay platform has garnered considerable attention since its announcement due to its utilization of blockchain technology, which enables secure and efficient cross-border payments. This initiative aligns with the alliance’s objective to bolster economic relations and foster economic autonomy.
๐จ BRICS PAY BLOCKCHAIN SYSTEM TO BE ANNOUNCED NEXT MONTH AT OCTOBER SUMMIT? ๐ง๐ท๐ท๐บ๐ฎ๐ณ๐จ๐ณ๐ฟ๐ฆ
REMEMBER THAT BRICS STATES HAVE SUCCESSFULLY TESTED #XRP IN THE PAST โ THEY MIGHT ACTUALLY USE XRP! ๐ https://t.co/bJoRMYqOIu pic.twitter.com/i9VX5tjpzI
โ ๐๐ถ๐ฎ๐ต๐ฒ๐ฎ (@_Crypto_Barbie) September 3, 2024
By diminishing reliance on the U.S. dollar, BRICS aims to revamp global financial systems in favor of their collective interests.
Russia’s Contribution to the Development
Russia has been a driving force behind the implementation of BRICS Pay. Key figures such as Finance Minister Anton Siluanov and Central Bank Governor Elvira Nabiullina have been actively involved in bringing this project to fruition. Russia’s recent endeavors to integrate digital currency into its financial landscape align with the objectives of the system.
The country has also revealed plans to launch two cryptocurrency exchanges and stablecoins tied to the Chinese yuan and other BRICS currencies. These initiatives demonstrate Russia’s commitment to reducing dependence on the U.S. dollar.
Potential Influence on Global Finance
The anticipated launch of BRICS Pay could have a significant impact on the broader financial arena. The share of the U.S. dollar in globally held reserves has been steadily declining, dropping from 72% in 2002 to 58% in 2024. This decline indicates a shift away from the dominance of the dollar in global trade. BRICS Pay could expedite this transition by offering a new, efficient payment system as an alternative to traditional networks like SWIFT.
The platform also aims to foster increased economic cooperation among the member states of the alliance and supports the overarching goal of establishing a more equitable multilateral monetary system. As the October summit approaches, financial experts and policymakers will be closely monitoring the situation, as the launch of the platform could signify a significant shift in the global economic landscape.