Following the lack of an announcement regarding a payment system at the BRICS Summit 2024, the Shanghai Cooperation Organization (SCO) has taken the lead in developing such a platform to target US dollar dominance. Indeed, the organization is looking to create its system to promote the use of local currencies.
The project by Secretary General Zhang Ming in a recent interview. Moreover, they note that talks to establish the infrastructure are ongoing and will likely include the BRICS alliance. The announcement comes as the Bank of International Settlements (BIS) recently discussed shutting down the mBridge project that has been crucial to BRICS de-dollarization efforts.
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BRICS & SCO Looking to Challenge Western Hegemony, Create Alternate Payment System
For the last several years, the BRICS alliance has firmly embraced de-dollarization. Yet, with the recent 2024 Summit being discussed as the location of the next step to challenging the US dollar, the bloc failed to make a substantial announcement in that regard. However, it looks like the nations are not done looking at new ways to circumvent the greenback’s dominance.
Indeed, the BRICS bloc may be looking to the SCO as the new developer of a payment system that targets the US dollar. The organization’s secretary general recently discussed these efforts during an interview. There, he noted that the talks for such a project have magnified recently.
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“The discussion on creating a single payment system is currently in progress in an informal format,” Ming said. “AT the moment, work is being done to increase the share of national currencies in mutual settlements.
Additionally, he noted that discussions had first started in 2022’s Samarkand Summit. “Work in this area is actively progression,” he added. The move assures that the global south is still hard at work to find an alternative payment method that challenges Western dominance. Yet, at this point, nothing substantial has come to fruition.