The BRICS Alliance aims to revoke control of the US dollar by launching a new payment system. The next decade could see a paradigm shift in the way countries resolve cross-border transactions. World trade could experience innovative changes that do not require US dollars to resolve payments.
Russian Foreign Minister Sergei Lavrov confirmed that the BRICS Alliance is working to form a new payment system. Future payment mechanisms may differ and take the financial markets by storm. Additionally, the US dollar does not play a role in international transactions, and the majority of trade transactions can be resolved through a variety of payment methods.
The new BRICS payment system is open to all countries
Lavrov revealed that the BRICS Alliance is working to form a new payment system that will allow trade transactions to be resolved in all countries without US dollars. Transactions can be resolved in local currency and no US dollars are incorporated into the payment mechanism in any form. Read here to find out if BRICS dumps the dollar for trade, if the number of US sectors will be affected.
This means that even non-brick countries can resolve trade transactions with new payment systems in the future. “There are currently many other initiatives being considered in the BRICS format. One of them is Brazil’s proposal to create an alternative payment platform that we are working on with this track. I am confident that even countries other than BRICS will have access to such mechanisms when they are created.”
The Minister also made it clear that the new BRICS payment system is not dependent on US- and European-controlled Swift. “There is an opportunity to form a payment platform independent of external influences. One example is the bank’s financial messaging system. It is convenient and does not rely on a rapid network.” He summed it up.
