The arrival of BRICS Pay could be a game changer for the economic alliance, and it could present an improved threat to the US dollar. Amid de-dollarization efforts, BRICS could be developing a way to facilitate international settlements outside of the greenbacks.
For much of the last year, the economic alliance has sought to increase the use of local currencies. However, they could eventually develop their own alternative currency. Through BRICS Pay, they could have a blockchain-based answer to that goal in a way that could revolutionize international transactions.
Also Read: Vladimir Putin Says BRICS Becoming Richer than G7
BRICS Pay Could be a Game Changer for Alliance
Since its inception, a key goal of the BRICS bloc has been to lessen the international presence of the US dollar. Indeed, it has partnered with the alliance’s overall goal of multipolarity within global economics. Yet, the collective hadn’t had a real shot at dethroning the Western currency until now.
The arrival of BRICS Pay presents the greatest threat to the US dollar, mostly because of how it uses blockchain technology and cross-border payments. The digital service is not a cryptocurrency or a digital asset; it is a payment system that is decentralized in nature. Therefore, it eliminates the necessity of having one national currency used in the transaction.
Also Read: China to Benefit the Most from BRICS Expansion
This presents the greatest benefit to the overall development of the bloc’s financial activity. Specifically, the prevalence of BRICS pay provides a key alternative. Instead of nations referring to the US dollar as an internationally accepted unit of currency, they can turn to the BRICS Pay system.
Additionally, it has been integrated and embraced already. Indeed, the UK’s Standard Chartered Bank has implemented BRICS Pay to join its list of digital payment systems. Moreover, the State Bank of India has unveiled a mobile application for cross-border transactions with BRICS Pay. Subseuqnlety showcases a future in which the payment system can threaten the international presence of the greenback.