The recent BRICS summit in Kazan highlighted a key initiative: BRICS Pay, a proposed independent payment network aimed at boosting cross-border transactions within BRICS nations. Originally introduced in 2018, BRICS Pay gained momentum after sanctions limited Russia’s access to SWIFT, compelling it to explore alternative means for global trade. Through BRICS Pay, members could bypass the dollar and SWIFT network, trading in local currencies and promoting financial sovereignty.
BRICS Pay would allow nations like Brazil, Russia, India, China, and South Africa to transact directly using digital wallets and QR codes, leveraging existing technologies like Russia’s Mir network, India’s Unified Payment Interface (UPI), and China’s WePay. This would make cross-border payments faster and less reliant on Western financial institutions. Brazilian President Lula da Silva expressed strong support for this payment system, stating that it is crucial to reflect a multipolar financial order, echoing a desire for greater independence from U.S. financial influence. In 2023, he even proposed a BRICS currency, emphasizing the need for a unified payment platform among BRICS countries.
Unlike SWIFT, which relies solely on messaging software, BRICS Pay would likely incorporate blockchain for secure and transparent transactions. This could also support the digital currencies already in development by member countries, such as China’s e-Yuan and India’s e-Rupee. These technologies would strengthen BRICS financial independence, while enhancing efficiency and security in transactions.
Although still in development, BRICS Pay could provide a significant advantage for emerging economies, especially as BRICS countries contribute over 35% of the global economy and represent nearly 45% of the world population. The introduction of a decentralized payment system could disrupt dollar dependency in global trade and reduce Western financial dominance.
Despite Russia’s enthusiasm for BRICS Pay, other members remain cautious. India prefers to focus on expanding its UPI system, while China already has its Cross-Border Interbank Payment System (CIPS) as an alternative to SWIFT. Nevertheless, the BRICS Cross-Border Payments Initiative (BCBPI) has caught global attention, and its development has prompted inquiries from Western financial institutions. The International Monetary Fund (IMF) has also requested more details from BRICS about its strategic direction.
BRICS Pay still faces challenges, as SWIFT remains dominant with around 80% of global trade settled in U.S. dollars and handling trillions of dollars annually. However, if BRICS Pay becomes fully operational, it may pave the way for a more balanced global financial ecosystem, reducing Western control and enhancing financial resilience for BRICS economies.
