First announced in March of this year, the BRICS Pay platform has garnered a lot of attention. Developed using blockchain technology, it is poised to greatly increase the role the economic alliance plays in global finance. Moreover, it could be set to finally launch as early as next month.
The grouping is fast approaching its 2024 Annual Summit. The marquee annual event for the economic collective should see various announcements made to highlight the developments of the last year and direct its focus for the foreseeable future. Subsequently, the BRICS payment system should be front and center.
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BRICS Pay to be Focus of 2024 Annual Summit.
Over the last two years, the BRICS Summit has been a focal point for the bloc. Moreover, it has become a key date for geopolitical developments in general. In 2023, the group expanded for the first time since 2001. Indeed, it welcomed the United Arab Emirates (UAE), Egypt, Ethiopia, and Iran to its ranks.
This year could be set to be just as memorable. The BRICS Pay platform could finally be launched at the upcoming event. Announced earlier this year, it is set to completely change global finance. Specifically, it is poised to create a new blockchain-based payment system that greatly supports de-dollarization.
The project was confirmed by Russian aide Yury Ushakov in an interview with state media. He described the project as “an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.”
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The arrival of the BRICS Pay system coincides with Moscow’s leniency toward cryptocurrencies in recent months. The country recently announced its intention to launch two crypto exchanges and stablecoins that are linked to the Chinese yuan and other BRICS currencies.
The BRICS payment system will also play a large role in its continued hope to lessen international reliance on the US dollar. To this point, those efforts have worked. According to the Atlantic Council’s Dollar Dominance Monitor, the dollar’s share of global reserves has stood at just 58% in 2024.
That is a stark drop for the greenback. In 2002, the dollar accounted for 72% of global reserves. The BRICS PAy platform should continue to encourage that figure to drop. Additionally, it should see the grouping challenge the Western SWIFT. Therefore, becoming a similar mechanism for nations in the global south, and supporting local currencies.
