On the ECB blog, Piero Cipollone intensified his claims that BRICS is “fragmenting” the global monetary system. Cipollone highlighted how countries like China, Iran, and Russia are creating alternative payment systems, disrupting global financial efficiency.
The European Central Bank (ECB) official Piero Cipollone, who previously declared that inflation is caused by climate change, has intensified his accusations that the BRICS countries are “fragmenting” the international financial system.
Cipollone, whose Italian name means “Big Onion,” addressed the BRICS debate over a new trade currency in a piece on the ECB blog. However, he disregarded the idea that the discussion was sparked by the weaponization of the euro and the US dollar. Stated differently, the “fragmentation” of the global payment system was initiated by the United States and the European Union. Cipollone stated: “International payments are one area where the risks of a fragmented global monetary system are most apparent. Certain countries are purposefully developing their platforms as alternatives to the current international infrastructures, even though we should be integrating payment systems to lower their complexity and cost to users.
“For example, China, Iran, and Russia have created their own cross-border payment messaging systems, while BRICS members have started to discuss a ‘bridge’ platform for linking digital payments and settlement. These developments could potentially disrupt the smooth flow of capital and reduce the efficiency of the global financial system.
“Given these shifts, there are compelling economic and political reasons for seeking to preserve the euro’s global currency status. This status brings tangible benefits to European citizens, such as low borrowing costs in international capital markets and protection from exchange-rate volatility. Moreover, in a fragmented geopolitical landscape, the euro’s international currency status provides strategic autonomy by shielding Europeans from external financial pressures.”
The question is: How will the EU “preserve the euro’s global currency status” given that it is choosing to forfeit an increasing number of international trade quotas in exchange for rejecting economic collaboration with the Global South?
Last year, GreatGameIndia reported that Naledi Pandor, South Africa’s Minister of International Relations, told reporters that the new currency created by BRICS nations might offer a shield from sanctions.
