In an effort to create an alternative to the international payment system SWIFT, the BRICS group of emerging economies is seeking to create its own BRICS payment system.
The system will play a key role in BRICS trade, allowing payments without the need for USD.
This move is considered very important for BRICS and participating countries. Xinhua News Agency reported that, according to Russian Central Bank Governor Elvira Nabiullina, there are currently 159 countries that want to apply this system. With the expected launch in October, this system could have a big impact on the global market.
Over the past few years, the BRICS group has pledged to increase efforts to de-dollarize. With the impact of Western sanctions on Russia, the move is clearly a boost for the domestic currency and alternative payment methods. Although many people are still skeptical, it is undeniable that the popularity of this system is up to this point.
According to Russian Central Bank Governor Elvira Nabiullina, 159 countries are ready to adopt the BRICS payment system when it comes into operation. Countries are looking to explore the expansion of Russia's SPFS payment system platform.
Ms. Nabiullina said that this system is an alternative to SWIFT. She added, "similar infrastructure exists in several other countries. We are discussing the interaction of such platforms, but here, the interest and technical readiness of our partners is very important".
The payment system is becoming increasingly important for the alliance. According to the head of Russia's BRICS Council of Presidents, Viktoria Panova, this mechanism is a priority for the BRICS 2024 Summit in October.
"Active efforts are being made to create a financial payment mechanism to make cooperation between BRICS countries easier, and maintain their sovereign economic and trade exchanges," she said. "This issue tops the agenda because every member of the group considers it an important issue," she added.
The launch of the system could open the door for trade expansion for the alliance. With many countries seeking BRICS membership, they may choose to apply the system when it is launched.
At this time, it is likely that BRICS' new payment system will be ready for the important summit in October.
Since the beginning of this year, BRICS has admitted 5 new members: Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE), along with former members Brazil, Russia, India, China and South Africa. Dozens of other countries have also expressed their desire to join BRICS.
