Putin Unveils Independent BRICS Payment System

• Russia’s President Vladimir Putin announced a collaboration with BRICS nations to develop an independent payment and settlement system aimed at operating outside of traditional Western financial regimes.
• Over 50 nations that have expressed interest in joining the alliance, a massive improvement over the 36 applications received from interested nations in March 2024.

The BRICS alliance is gaining momentum, with increasing numbers of developing countries joining in hopes of challenging the U.S. dollar’s longstanding economic hegemony.

This week marked the Russian Energy Week Forum in Moscow, which hosted representatives from BRICS countries, among others. 

During this forum, Russia’s President Vladimir Putin announced “We are working within the framework of cooperation with BRICS countries on creation of our own payment and settlement configuration, which will create conditions for efficient and independent servicing of the entire foreign trade.” 

BRICS countries consisting of Brazil, Russia, India, China, and South Africa alongside recent additions such as Iran, Egypt, Ethiopia, and the UAE have steadily advanced toward de-dollarizing the U.S. dollar.

Putin lit up the room in the forum demanding the need for a strong independent framework that would allow BRICS countries to process international transactions more efficiently. With the recent inclusion of countries such as Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, BRICS now represents over 40% of the world’s population and controls a significant portion of global oil production there is a dire need for an efficient system.

Generally, the overarching goal is to reduce dependence on Western-dominated financial giants such as SWIFT and financial institutions like the World Bank, which have controlled a huge chunk of the financial landscape.

This new system aims at transforming how foreign trade transactions are carried out between BRICS nations offering an alternative to the dominant force of the U.S. dollar. Worth noting that Russia has been at odds with the U.S., locking horns over tech, military, and economic matters. Now the BRICS nations are fighting back taking the only power that the U.S. has used to hold these nations down. 

Putting into record, as we earlier reported, over 50 nations have shown great interest in joining the BRICS intergovernmental organization. Over the years, these countries have searched broadly and deeply for ways to operate outside of traditional Western financial platforms. Developing a new payment system tailored for BRICS is a significant step in this direction, as it allows these nations to navigate better a global financial landscape often dominated by Western interests.

Russia, the prime driver of the BRICS de-dollarization movement, is working on a crypto-based system to circumvent this blockade. Given that the cryptocurrency sphere is fully capable of fulfilling the requirements of the BRICS nation, will this see new nations enter the crypto landscape?