One of the major desires of the BRICS bloc has been its attempts to curtail the Western-led SWIFT payment system. That had occurred with the arrival of the alliance’s very own alternative. However, it could serve an even bigger function. Especially, could BRICS Pay pave the way for an eventual BRICS currency in 2024?
The de-dollarization plan for the bloc has been a massive point of emphasis for its dealings. Moreover, it has taken some crucial steps toward eventually creating a clear way of ditching the currency altogether. Yet, its strides with its alternative payment system could be the largest step toward making that a reality.
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BRICS Pay Could be a Massive Step Alternative Currency
Throughout this year, the growth of the BRICS alliance has been a clear geopolitical development. It has seen some of the world’s most prominent countries come together to combat Western dominance. Moreover, those countries have seen their economic cooperation reach unprecedented heights.
However, that has arrived intending to eventually usurp the international prestige of the US dollar. Yet, that prospect is quite a large undertaking, with global payments in the greenback still leading the globe at 48%. Still, the BRICS bloc could be well on its way with the arrival of BRICS Pay, a service that could ultimately lead to the creation of a BRICS currency at some point in 2024.
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Fortune Magazine discussed the rise of BRICS ideologies and their economic hopes for the world. There, they disclosed how BRICS Pay could be a critical first step in eliminating US dollar reliance in developing economies. Specifically, how it could replace the Western-based SWIFT payment system.
Speaking of a BRICS currency, Fortune forecasted such a development to be unlikely. However, they said that “the goal appears to be to create an efficient integrated payment system for cross-border transactions as the first step and then introduce a new currency.”
Ultimately, this would be the most optimal way to unite the bloc around the idea of a BRICS currency. As many have not expressed interest in abandoning their local currencies, it allows the unilateral action to take place under one BRICS umbrella.
Therefore, they could approach the use of the New Development Bank in implementing its own US dollar replacement. With the currency project reportedly developing throughout this year, that could be on its way in 2024.