tl;dr
A new BRICS Payment System has garnered interest from 159 countries, challenging the dominance of the US SWIFT banking system. The system aims to facilitate cross-border transactions without relying on the US Dollar and may introduce a gold-backed currency. The bloc is considering using blockchain a...
BRICS Payment System and De-dollarization: BRICS nations announce alternative payment system to challenge SWIFT, aiming to reshape global trade
A new BRICS Payment System has garnered interest from 159 countries, challenging the dominance of the US SWIFT banking system. The system aims to facilitate cross-border transactions without relying on the US Dollar and may introduce a gold-backed currency.
Crypto as a Bridge Across Bloc Nations: BRICS nations explore independent payment system based on digital technologies and blockchain, with potential for crypto to bridge international trade and political affiliations
A new BRICS Payment System rolling out just two weeks before, a staggering 159 countries have shown interest and willingness to adopt it posing a challenge to America’s much popular SWIFT banking system. Several nations believe that America is weaponizing the SWIFT system against countries that don’t have good terms with the USA and thus looking for de-dollarization.
BRICS PAYMENT SYSTEM AND DE-DOLLARIZATION
Last month in July, the BRICS nations announced their own payment system as an alternative to America’s SWIFT with the aim of reshaping global trade. The alliance noted that this new payment system will facilitate cross-border transactions and settlements without relying on the U.S. Dollar. This move seeks to potentially alter the balance of economic power in global markets.
As per the latest reports, several other nations have extended support to the new BRICS payment system. One Russian official confirmed that nearly 159 countries are looking to adopt the system. There are some talks going around that the nation bloc could introduce a gold-backed currency at the upcoming BRICS Summit in October 2024.
WILL THE BLOC USE BLOCKCHAIN AND CRYPTO?
Although the bloc is mulling using a BRICS Payment System, it’s not going to be easy to replace the USD dominance, especially while trading with Western powers. Also with the nation bloc expanding, there would be too many local currencies for use in international trade.
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics”.
Crypto can prove to be a strong bridge across the bloc nations as well as for international traders with Western countries. Digital assets provide a connecting link worldwide irrespective of political affiliations. Even Western nations have shown interest in embracing crypto with leaders like Donald Trump pledging to make Bitcoin the reserve currency of the USA.
It will be interesting to see whether other nations within the BRICS bloc would also favor the use of crypto. For years, China has maintained an anti-crypto stand.