TASS reported that in a move to announce a similar payment system to SWIFT, Vice Chairman of the Russian State Duma (the Russian House of Representatives) Alexander Babakov said that the establishment of a separate payment system similar to the Western SWIFT payment system would help create a new economic reality for BRICS countries.
Western banks and funds will not sponsor the development of the African continent, as they do not want the continent to escape the control of neo-colonialism, Mr. Babakov said. Therefore, the establishment of a separate payment system requires many different organizations, especially an investment bank and a clearinghouse bank to merge into one.
"The BRICS financial agenda has the main initiative of building a new economic reality that solves both of its main tasks - creating our own payment system for BRICS countries, similar to SWIFT, based on state-owned banks capable of processing payments from partner countries from BRICS countries and the related role of this bank," said Mr. Babakov.
The Vice President of the Russian State Duma - the country that assumes the role of BRICS President in 2024 - noted that the development and implementation of a separate payment system will help BRICS countries reduce their dependence on Western financial institutions and increase national financial autonomy.
With the help of this system, BRICS countries can conduct financial transactions without the intervention of outside organizations.
"It is necessary to create a new system of financial institutions. The new system must be technically compatible with the existing financial infrastructure of participating countries, including integration with national payment systems, banks and other financial institutions. At the same time, the system must ensure a high level of security and data protection to prevent cyber attacks and unauthorized access to financial information," Mr. Babakov added. According to him, this will require the application of advanced cryptography and cybersecurity technologies.
The creation of such a system will lead to increased economic efficiency by reducing transaction costs, as well as speeding up transactions, thereby speeding up capital turnover and improving liquidity. This is especially important for companies participating in international trade," Deputy Chairman of the Russian State Duma Babakov emphasized.
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.
In addition to the common payment system, BRICS is also making efforts to promote the goal of creating a common currency to counter the USD.
BRICS has launched a de-dollarization program after the US imposed sanctions on Russia in February 2022 over its military campaign in Ukraine.
