The BRICS economic alliance has called its incoming payment system a global bombshell as it nears its long-awaited arrival. Indeed, Russia Federation Council Speaker, Valentina Matviyenko, discussed the potential implications of the mechanism at a recent press conference, Russian State Media reports.
The BRICS Bridge is poised to be the global south’s answer to SWIFT. Moreover, it will play a huge role in the alliance’s continued de-dollarization. Specifically, it should facilitate even more trade in local currency, and allow the bloc to engage in trade settlements with no need for the US dollar at all.
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BRICS Payment System Called Global Bombshell as Debut Approaches
The BRICS have had a rather successful few years. The alliance has increased in prominence in a major way. It has enacted its first expansion effort since 2001. Therefore, growing the bloc to nine countries while introducing Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
That has led the group to develop its payment infrastructure similar to SWIFT. Moreover, BRICS have called their payment system a global bombshell as its debut gets ever closer. Many have predicted it could arrive during the 2024 annual summit.
“The creation of the independent financial payment platform BRICS Bridge, a standalone mutual payment system on a firm joint platform, is now being discussed within BRISC,” Matbiyenko said. “I have spoken both with the Central Bank and the finance ministry, things are moving along nicely,” she added.
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“If it works it will be a bombshell globally, in the best sense,” she added. Moreover, she noted that there is a possibility that it could be approved at the upcoming summit. “Perhaps it will be approved then, or at least the discussions will lead to a decision on when and in which format it should be finalized,” she said.
Russia and India recently discussed greater de-dollarization practices in bilateral trade. That has been a growing theme for the group. The BRICS Bridge should make that transition process even easier. Additionally, it will provide greater exposure and use of the alliance’s native currencies.