BRICS Nations Ditch US Dollar: 20 Countries Join Russian Payment System
The BRICS alliance is accelerating its de-dollarization efforts, with a significant development: Coinciding with the BRICS overall de-dollarization plans, 20 nations have adopted the Russian Payment system to ditch the US dollar. This move marks a pivotal shift away from reliance on the US currency in international trade.
This initiative is part of a broader strategy to promote trade using national currencies. Indeed, the country has said that its The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. The goal is to create a more independent and resilient financial system for member countries.
Russia's finance ministry and central bank released a BRICS Pay was a major focus at the Kazan conference. This alternative payment infrastructure aims to facilitate seamless transactions between BRICS nations, bypassing the traditional dominance of the US dollar.
The advantages of this system are clear: reduced dependence on the US dollar, lower transaction costs, and increased economic autonomy. As proposed, the decentralised scheme would allow BRICS countries to trade with each other without relying on the SWIFT system, which is largely influenced by the United States.
The impact of this shift could be substantial. TEHRAN (Tasnim) – Coinciding with the BRICS overall de-dollarization plans, twenty countries have adopted the Russian Payment system to ditch the US dollar. Russia is actively promoting this alternative payment system to foster greater economic cooperation within the BRICS bloc and beyond.
A group of emerging countries are planning a payments platform to bypass the US dollar, Lavrov announced. This signals a clear intention to create a parallel financial infrastructure that challenges the existing global order.
The initiative follows a BRICS summit call for trade in local currencies and the exploration of alternative payment mechanisms. This reflects a collective desire among BRICS nations to lessen their exposure to US dollar-related risks and promote greater economic stability.
As more nations adopt the Russian Payment system and the BRICS de-dollarization efforts gain momentum, the global financial landscape is likely to undergo significant transformations in the coming years. This shift could reshape international trade and investment patterns, potentially leading to a more multipolar financial world.