BRICS’ Game-Changing Blockchain Payment System: The Future of Global Transactions!
The new BRICS payment system, primarily initiated by China and Russia, also known as “BRICS Pay,” is a planned independent and decentralized payment messaging system for BRICS countries to trade with each other in their own currencies, independent of the US dollar.
The Russian and Chinese finance ministries and their central banks, in cooperation with BRICS partners, are preparing a report for BRICS leaders on a project “to improve the international monetary and financial system,” which will include a list of initiatives and recommendations regarding the project.
The outcome of the report could be the creation of a multilateral digital payment and settlement platform, which would help bring together the financial markets of BRICS member states and increase the volume of trade between them. In this case, the central bank digital currencies of the BRICS countries could be used, with their price pegged to the value of national currencies.
Keeping in mind that “the digital settlement and payment platform will be decentralized, with no participant being able to restrict the actions of others,” the proposal should be approved by Russia and China. If the initiative proposed by Russia and China is approved, the BRICS countries will be asked to coordinate legislative work on it.
Work is still underway on the idea of moving toward a single currency that can be used across BRICS countries, and there is also a trend toward using more national currencies, including digital currencies, such as the digital Russian ruble and the digital Chinese yuan.
This was confirmed by Russian Deputy Foreign Minister “Sergei Ryabkov” in an interview with the Serbian newspaper Politika on Tuesday, October 22, 2024, when he said, “Major developments are expected regarding mutual payment mechanisms in the BRICS countries after the summit in Kazan.” Ryabkov added—in the interview published by the Russian Foreign Ministry on its official website—that “I believe that everyone will see significant developments in this area at the conclusion of the summit in Kazan.
As our Chinese friends say, a journey of a thousand miles begins with one small step. I believe we will take a not-so-small first step.” Ryabkov added in the interview published by the Russian Foreign Ministry on its official website. He continued, “But we should not expect a huge leap forward.
This process is likely to be an evolving one because the BRICS group operates on the basis of consensus. The Russian diplomat noted that “there is still a long way to go to gradually transition from payments in national currencies to the creation of a single BRICS currency.”
Here, the BRICS countries are planning to launch a digital asset platform for cross-border settlements and create a new BRICS currency, or support any other currency to replace the US dollar, as a move that appears to have angered US President-elect “Donald Trump.”
For this reason, President “Trump” warned BRICS countries, including India, to prepare for a 100% increase in tariffs if they continue their efforts to reduce the role of the US dollar in the global economy. With Trump stating that “if the BRICS countries go ahead with their plans to reduce their dependence on the US dollar, they will lose the opportunity to sell any of their assets to the United States.”
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This BRICS Pay project sounds like a major shake-up in global finance—decentralized, digital, and aiming to cut the dollar out. It’ll be interesting to see how this plays out, especially with the US pushing back hard.
You mad late bro