Currently, the BRICS group accounts for approximately 22% of global exports of goods and services.
The consolidation of the BRICS group towards financial autonomy and the diversification of international transactions seems unstoppable. As the world watches carefully, the main focus now shifts towards creating an alternative payment system to the traditional dominance of the US dollar.
At the heart of this new direction is the idea of an international payment system called "BRICS Pay", based on blockchain technology and leveraging digital assets. Such a mechanism, designed to overcome Western restrictions and sanctions, could open up new opportunities for international trade by reducing dependence on US-controlled financial infrastructure.
The recent announcement has raised several questions about the future of the global financial system. The proposal to use national currencies for trade transactions within the BRICS group has the potential to alter the global economic balance of power. A tangible example of this push is the significant increase in commercial transactions between Russia and China carried out in rubles and yuan.
According to Shen Yi, head of the BRICS Research Center at the Development Research Institute of Fudan University in China, this strategy improves economic security and stabilizes transactions against external contingencies, opening up new avenues of economic development for member countries.
The Russian Finance Minister, Anton Germanovič Siluanov, outlined the details of the common payment system, underlining that the goal is to create an alternative financial platform that reduces the monopoly of the Western SWIFT system and favors greater autonomy of economies of the BRICS countries.
Russia has accelerated its plans for digital currencies, which operate outside the control of international regulators. The Central Bank of Russia (CBR) has been working to create the long-discussed central bank digital currency (CBDC), the digital ruble, which is expected to enter circulation in 2025.
Following the new legislation in 2023, the Central Bank of Russia receives the status of operator of the ruble digital platform. The regulator will also be responsible for the security of digital rubles in circulation, as well as the organization and round-the-clock operation of the platform.
Additionally, there is growing recognition of the importance of leveraging emerging technologies, such as digital currency, to create a more flexible and resilient financial system. The intention of BRICS countries to adopt this technology for their payment system is a tangible sign of the desire to innovate and adapt to changing global economic dynamics.
Currently, the BRICS group accounts for approximately 22% of global exports of goods and services. However, most deals in international trade still take place using G7 currencies via the SWIFT interbank system.
In a context in which the US dollar is used as an instrument of economic pressure and American public debt reaches record figures, BRICS countries’ push towards the use of national currencies in international trade represents a direct challenge to the status quo global financial. As the world watches with interest, the fate of the global financial system appears increasingly tied to the decisions and actions of emerging countries within the BRICS group.
Original article published on Money.it Italy 2024-04-11 06:46:00. Original title: BRICS Pay, cosa sappiamo della nuova moneta digitale che vuole sfidare il dollaro USA?
