As part of the alliance’s ongoing efforts to build an alternative to SWIFT, the economic alliance has been seeking to create its own BRICS payment system. It would play a key role in the alliance’s trade relations. In particular, it should allow for unilateral settlements without the use of the US dollar.
The move is expected to be of great importance to the bloc and its member countries, and many are expected to join. According to Russian officials, 159 countries are currently keen to adopt the system. Its possible launch in October could have a major impact on global markets.
Countries Flock to BRICS Payment System as SWIFT Opposition Emerges
In recent years, the BRICS alliance has pledged to step up efforts to de-dollarize. Given the impact of Western sanctions against Russia, the move is clearly a promotion of local currencies and alternative payment methods. Although many were skeptical, its popularity so far is undeniable.
According to Elvira Nabiullina, head of the Russian Central Bank, 159 countries are ready to adopt the BRICS payment system once it is operational. In fact, these foreign participants want to consider the expansion of the Russian platform for the Transmission of Financial Messages System (SPFS).
Nabiullina noted that this system is an “is an alternative to SWIFT.” Moreover, she added, “Similar infrastructure exists in some other countries. We are holding discussions on the interaction of such platforms, but here the interest and technical readiness of our partners are important.”
The payment system is becoming increasingly important for Allianz. According to Russian BRICS Presidential Council Chairwoman Victoria Panova, the mechanism is a priority for the BRICS summit to be held in 2024.
“Active efforts are underway to create a financial payment mechanism that would make cooperation between BRICS countries easier, maintaining their sovereign trade and economic exchanges,” she said. “This issue tops the agenda because every member of the group sees it as important,” she added.
The system should be up and running soon. Moreover, it could open the door to expanded trade relations for the alliance. Various countries are seeking membership and may choose to adopt the system once it is in place. At this point, the stage could be set for a crucial summit in October.