The BRICS bloc, which includes emerging countries such as Brazil, Russia, India, China, and South Africa, is set to launch its payment platform, BRICS Pay, during its annual summit in 2024. This initiative aims to strengthen trade among its members while reducing dependence on the US dollar.
An ambitious de-dollarization strategy
For several years, the BRICS bloc has intensified its efforts to reduce the dominance of the US dollar in international trade. With the introduction of BRICS Pay, this strategy takes on a new dimension. The platform is designed to facilitate transactions between member countries, thereby allowing for smoother and less costly exchanges. By using blockchain technology, BRICS Pay promises to enhance the transparency and efficiency of cross-border payments.
Experts believe that this initiative could transform the global financial landscape by providing a viable alternative to the Western-dominated SWIFT system. According to Dr. Raise Hussin, founder of an independent think tank, the arrival of BRICS Pay could not only increase the volume of trade among member nations but also pose a direct challenge to the US dollar. By facilitating transactions in different national currencies, BRICS Pay could reduce the need to use the dollar as an intermediary in international trade.
A potential impact on the global economy
The impact of BRICS Pay on the global economy could be substantial. By allowing member countries to trade directly with each other without going through the dollar, the platform could contribute to a redistribution of trade and financial flows. This could also encourage other nations to consider alternatives to the US dollar, thereby reinforcing the trend towards de-dollarization.
This evolution is all the more relevant in a context where the United States is facing major economic changes. Protectionist policies and sanctions imposed by Washington have pushed some countries to seek ways to protect their economies against fluctuations in the dollar. By offering a strong alternative with BRICS Pay, the bloc could not only strengthen its internal trade relations but also attract other countries eager to diversify their trade partners.
