The BRICS alliance plans to weaken the dominance of the United States (U.S.) dollar by launching a new payment system.
In the next decade, there could be a complete paradigm shift in the way countries conduct cross-border transactions. Global trade could face revolutionary changes in which the U.S. dollar will no longer be necessary for payment settlements.
The Minister of Foreign Affairs of the Russian Federation Sergey Lavrov confirmed that BRICS is actively working on forming a new payment system. The new mechanism differs from existing ones and could significantly shake up financial markets.
The U.S. dollar will have no role in international transactions, and most trade agreements could be carried out through alternative payment methods.
Lavrov emphasized that BRICS is developing a payment system that will allow all countries to conduct trade transactions without using the dollar. Transactions will be able to be carried out in local currencies, and the new system will not include the U.S. dollar in any form.
This means that even countries that are not BRICS members can use this system to settle trade agreements.
“There are several initiatives currently being considered within the BRICS format. One of them is Brazil’s proposal to create an alternative payment platform, which is already under development. I am convinced that even countries outside BRICS will have access to these mechanisms once they are implemented,” stated Lavrov.
The minister also stressed that the new system will not depend on the SWIFT network, which is dominated by the U.S. and Europe.
“There is an opportunity to form payment platforms independent of external influences. One example is the financial messaging system of the Central Bank of Russia. It is efficient and operates without relying on SWIFT,” concluded Lavrov.
BRICS is an intergovernmental organization consisting of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
