BRICS to Launch Blockchain Payment System to Reduce Dependency on Dollars

• BRICS Pay will help the alliance reduce its dependence on the US single currency in global business transactions.
• Russia plays a key role in the development of BRICS Pay and aims to integrate digital money.
• In particular, the launch of the platform could change the global financial landscape and challenge traditional systems.

The BRICS alliance, which includes Brazil, Russia, India, China and South Africa, is preparing to introduce a major development to the wider financial world. The group plans to unveil the BRICS settlement blockchain platform at its October 2024 summit. Announced in March, this platform aimed to reduce dependence on the US dollar for international movements by creating a new system that supports local currencies between BRICS countries.

Importance of BRICS payment system

The BRICS Pay platform has been closely watched since its announcement as it uses blockchain technology, which enables secure and efficient cross-border spending. This initiative is in line with the alliance’s goal of strengthening economic ties and promoting economic independence.

By reducing dependence on the US dollar, the BRICS aims to reform global financial systems in favor of their collective interests.

Russia’s role in development

Russia has been a driving force behind BRICS Pay. Prominent figures such as Finance Minister Anton Siluanov and Central Bank Governor Elvira Nabiullina have been actively involved in the realization of this project. Russia’s recent efforts to integrate virtual currencies into its finances are in line with the system’s goals.

The country has also announced plans to launch two crypto exchanges and stablecoins pegged to the Chinese yuan and other BRICS currencies. These efforts demonstrate Russia’s determination to reduce dependence on the US dollar.

Potential impact on global finance

The expected launch of BRICS Pay could have a crucial impact on broader financing. The share of the US currency in internationally held funds has been steadily declining, from 72% in 2002 to 58% in 2024. This price decline signals a shift away from the dollar’s dominance in global trade. BRICS payers could accelerate this conversion by offering a new, efficient reimbursement system as an alternative to traditional networks such as SWIFT.

The platform also aims to promote greater economic cooperation among the coalition states and endorses the broader goal of creating a more balanced multilateral accounting system. As the October summit approaches, financial experts and policymakers will be watching closely as the wallet’s launch could mark a major change in the nationwide economic situation.