The BRICS economic alliance has confirmed that 159 participants are set to adopt its upcoming blockchain-based payment system, known as BRICS Pay. This announcement solidifies the bloc’s efforts to redefine its global economic position and further advance its de-dollarization strategy. The BRICS Pay system is expected to rival existing global payment systems, such as the Western-dominated SWIFT network.
As speculation grows regarding the official launch of BRICS Pay, many anticipate its unveiling at the highly anticipated 2024 BRICS Summit. Once launched, the system will enable participating nations to settle trade in local currencies, reducing reliance on the U.S. dollar for international transactions. Russian officials recently confirmed the number of participants in response to earlier reports, clarifying that 159 participants, not 160 as previously rumored, will be involved.
De-Dollarization Efforts and Global Trade
The adoption of the BRICS Pay platform is a pivotal move in the bloc’s de-dollarization efforts. It provides an alternative to dollar-based trade by allowing participating countries to conduct transactions in their own currencies. This shift is expected to weaken the U.S. dollar’s dominance in global trade and empower nations that have sought alternatives to the dollar.
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Russia, in particular, stands to benefit from the platform as it looks to overcome trade restrictions imposed by Western sanctions in 2022. The introduction of BRICS Pay would also allow nations within the alliance to increase the adoption of their local currencies, enhancing their economic influence on the global stage.
Expansion and the 2024 Summit
More than 20 countries are expected to take part in the BRICS Pay platform, although specific nations have not yet been disclosed. Countries such as Venezuela, Malaysia, Thailand, Nigeria, and Turkey have expressed interest in joining BRICS. The inclusion of Turkey, a NATO member, would represent a significant geopolitical shift, as it would be the first NATO nation to join the alliance, potentially strengthening BRICS’ standing globally.
The 2024 BRICS Summit will be a crucial moment for the bloc, as it discusses both the official launch of BRICS Pay and the ongoing expansion of the alliance.
Credit: Watcher Guru
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