With the BRICS Pay platform likely to debut at the alliance’s 2024 Annual Summit, the bloc is set to increase its trade dealings while facilitating a global shift away from the US dollar. An independent think tank has recently delved into the economic groups’ focus on an alternative to the greenback. Moreover, why that focus is crucial to its continued growth.
The bloc has firmly embraced de-dollarization for the last several years. With key initiatives set to lessen international reliance on the currency, the collective is looking to take It a step forward in 2024. That move could be all the more critical this year with the United States facing monumental economic changes.
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BRICS Pay Seeks to Change Global Finance, and Experts Think It Can
The BRICS bloc has ground tremendously over the last several years. A key part of its growth strategy has been in annual summits. In 2023, the bloc welcomed a four-nation expansion effort that was its first since 2001. Specifically, it saw the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia join the bloc.
This year, it could be followed up with an even bigger announcement. Indeed, BRICS Pay, a blockchain-based payment system created to challenge the Western SWIFT, is set to arrive. Moreover, its arrival could have an unprecedented impact on global finance.
According to one independent think tank, BRICS Pay and its 2024 arrival could increase overall trade, and greater challenge the US dollar. According to EMIR Research founder, Dr. Raise Hussin, the platform’s economic symmetry could be huge in the increase of economic trade between nations that all sport different currencies.
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Additionally, he noted why that could be incredibly important for BRICS. The bloc has been attempting to curtail Western sanctions since 2022. Yet, Donald Trump’s plan to implement 100% tariffs to ensure the dominance of the greenback.
Although Trump has stated his willingness to lift sanctions, he has also shown a desire to protect the dollar at all costs. If he wins reelection in November, the BRICS bloc could face increased competition to ensure the currency’s status. That opposition is something they have not faced under the current regime.
Those two aspects are critical to the creation and arrival of BRICS Pay. The prioritization of a shared payment system will help the bloc on both ends. Yet, its premiere benefit is found in how it seeks to create a path toward lessening reliance on the Western currency.