Siluanov said, in an interview with RT on the “Newsmaker” program, that the international payments system that relies on Western infrastructure has become increasingly politicized, so the BRICS countries decided to create their own independent payment platform.
The Russian minister added that the group will develop a mechanism based on modern technologies that will allow foreign trade transactions to be conducted faster, cheaply, and regardless of attempts at external interference.
He also pointed out that the BRICS countries (Russia, China, India, South Africa, Brazil, Saudi Arabia, UAE, Iran, Egypt, Ethiopia) will continue to reduce the share of the dollar in mutual settlements and the increasing use of national currencies.
The interview came before the meeting of finance ministers and central bank governors of the BRICS countries in Moscow tomorrow, Friday (October 11, 2024), where officials will summarize the work of the financial track of Russian representation in the group.
Russia, like other countries, is working to increase transactions in national currencies and launch tools for implementing international transfers, with the aim of breaking the West’s monopoly and reducing dependence on “toxic” Western currencies in international trade.
Among these tools, Russia adopted last August a law that opens the way for the use of cryptocurrencies on an experimental basis in foreign trade and trading.
Russia is also discussing with the countries in the BRICS group the establishment of an electronic platform for international payments, and it is expected that the decision to establish this platform will be one of the most prominent agendas of the BRICS summit in Kazan, Russia, this month.
Source: RT
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19 countries want to join BRICS
Analysis: BRICS Countries Forge Their Own Path with Independent Payment Platform
In a significant move, the BRICS countries have announced their decision to create an independent payment platform, marking a departure from the traditional Western-dominated financial infrastructure. This development comes as a response to the increasing politicization of the international payment system, which has led to calls for a more inclusive and secure alternative.
According to Russian Minister Siluanov, the new platform will utilize modern technologies, such as blockchain, to facilitate faster and cheaper foreign trade transactions. This move is expected to reduce the risk of external interference and allow for more seamless cross-border transactions between member states.
The BRICS payment platform, also known as BRICS Pay, is designed to be a unified digital payment system, connecting member nations and enabling financial integration. As reported by [2], BRICS Pay aims to promote financial inclusion and cooperation among its member countries, which include Russia, China, India, South Africa, Brazil, as well as recent additions such as Saudi Arabia, UAE, Iran, Egypt, and Ethiopia.
Interestingly, this development is not entirely new. Previous reports, such as the NIPS-BRICS PAY PROJECT PRESENTATION from 2019 <a href="https://digitalbankbrics.com/media/NIPSPresentationEN.pdf”>[1], indicate that the concept of BRICS Pay has been in the works for several years. However, the recent announcement suggests that the project is now gaining momentum, with 159 participants from 20 countries set to adopt the new payment system, as confirmed by the BRICS alliance [3].
The implications of this development are significant. By creating an independent payment platform, the BRICS countries are not only reducing their reliance on Western financial infrastructure but also promoting a more multipolar world order. This move is likely to have far-reaching consequences for international trade and finance, as well as the global balance of power.
As the world watches the rollout of BRICS Pay, it remains to be seen how this new payment system will impact the global economy and the financial relationships between nations. One thing is clear, however: the BRICS countries are determined to forge their own path and create a more inclusive and secure financial framework that serves their interests.
