This year marks the first time that BRICS—a group of five major emerging economies, now expanded to include ten members—will hold a summit since its expansion. The big event will take place from October 22 to 24 in Kazan, Russia. One of the key topics everyone is buzzing about is the new BRICS Pay system, a payment system developed to help strengthen economic ties between BRICS countries.
Russia, which is leading the group this year, has made a bold call to its partners: it wants to create a new alternative to the International Monetary Fund (IMF). Why? Russia believes the IMF is heavily influenced by Western nations, which use it to apply political pressure. By creating their own system, the BRICS countries aim to lessen that influence and become more financially independent.
The Birth of BRICS Pay
One of the most exciting developments at this summit is the BRICS Pay system. According to its official website, BRICS Pay is being developed as a “cornerstone” for payments between member nations. Experts in China say this new payment system will make it easier for these countries to trade with one another, without relying so much on the US dollar. Reducing reliance on the dollar is a huge deal because it helps these nations strengthen their economic independence and gives them more control over their trade relationships.
Russia’s Finance Minister, Anton Siluanov, has been vocal about the need for a new, faster, and cheaper payment system for cross-border trade. He believes this will enable BRICS countries to trade without worrying about interference from outside countries—especially those in the West.
Why Does BRICS Pay Matter?
BRICS Pay could be a game-changer. Think of it as a decentralized system similar to Europe’s SWIFT, which is widely used for international payments. But BRICS Pay is designed to be more independent, faster, and more affordable. The system has been in the works for years, with early discussions dating back to 2019. And now, as BRICS expands its membership, the payment system is taking center stage as a tool to boost cooperation among the group’s new and old members.
The system also comes at a time when many countries, particularly developing nations, are looking for ways to protect their economies from external pressures and find alternatives to the dollar. By creating their own payment system, BRICS countries are safeguarding their financial sovereignty.
The De-Dollarization Movement
One of the biggest reasons BRICS countries want an alternative payment system is to move away from the dominance of the US dollar. For years, the US has used its financial power to impose sanctions and exert control over other countries. This has pushed many nations, especially those in the BRICS group, to seek ways to protect themselves from dollar-based economic instability.
Experts have pointed out that the US has long used its control over the dollar to shift its own economic crises onto other countries, benefiting itself while causing harm elsewhere. A BRICS payment system like BRICS Pay could help balance the scales by offering an independent, secure way for these nations to trade and settle payments without relying on the dollar.
BRICS’ Growing Economic Power
BRICS is no longer just a group of five countries. This year, with the addition of new members like Saudi Arabia, Egypt, the UAE, Iran, and Ethiopia, the group has doubled in size. Together, BRICS countries represent 37% of the global economy, making them an increasingly important player in global trade and finance.
The new payment system could help deepen economic ties among these nations, allowing them to work together more efficiently. By promoting trade and investment within the group, BRICS Pay could help drive global economic recovery and provide a blueprint for future financial cooperation.
A Global Impact?
The creation of BRICS Pay is about more than just making payments easier between BRICS countries. It could signal a shift in the global financial system. For decades, the US dollar has been the king of international finance, but the rise of alternative systems like BRICS Pay shows that other countries are looking for new ways to conduct business and reduce their dependence on the dollar.
As the BRICS summit approaches, the world is watching closely. Will this new payment system truly reshape global trade? Will it spark a broader movement away from the dollar? Only time will tell, but one thing is clear: BRICS Pay could change the game for emerging economies looking for a more balanced, inclusive global financial system.
