From October 22 to 24, it is being held in Kazan, Russia, lto XVI Summit of the Brics, the first meeting after the incorporation of five new countries to the bloc (Saudi Arabia, Iran, Egypt, Ethiopia and the United Arab Emirates), approved last year in Johannesburg.
Economic cooperationwill be one of the main axes of the agenda in Kazan, Therefore, it is relevant to highlight the news from the Brics Business Council, held in Moscow on October 17 and 18, where it was presented Brics Pay, a decentralized and independent payment messaging system under development by member countries.
On the first day of the forum, the promotional cards of the new system were announced: on the back, it is indicated that it is a “bank card model that will connect with the Brics Pay application”, while the front has a QR code that allows you to credit a 500 ruble gift voucher through the application.
How does Brics Pay work?
The official page of Brics Pay explains the architecture of this payment system as a hybrid approach that combines centralization and decentralization:
- Centralization inside of each country: Each country in the bloc maintains its own national payment network, which is connected to the Brics Pay platform. This centralization facilitates the control and management of transactions within each country.
- Decentralization to scale international: The interconnection between national payment networks is carried out in a decentralized manner, allowing participating banks to establish direct connections with foreign banks or other financial institutions.
This new cross-border payments infrastructure will allow international commercial transactions to be carried out faster and cheaper without depending on foreign systems. This is how Russian Finance Minister Anton Siluanov described it in an interview with RT on October 10. with this The aim is to avoid the use of dollars and euros, allowing transactions in local currencies.
Although its full implementation will take time, Russia is expected to launch a pilot service for cashless payments for foreigners this year, accepting Visa and MasterCard cards. In 2025, this service could be extended to Russians, mainly in Türkiye, Egypt and the Maldives.
Challenge to the dominance of the dollar
The Brics represent a rising global economic force. They control more than 20% of the world’s gold reserves, led by Russia and China, and produce more than 50% of the gas and more than 40% of the oil globally.
In recent decades, they have driven more than 40% of global economic growth, and their average growth rate by the end of 2024 is projected to be 4%, surpassing the G7 countries (1.7%) and the global rate ( 3.2%).
“The BRICS already play a leading role in the world economy not only today, but it is quite clear that this role will only increase in the future,” said Vladimir Utin.
Given its growing influence and its objective of reducing dependence on the dollar, The development of Brics Pay takes on greater relevance.
“The global financial system of the Bretton Woods era is undergoing a significant transformation. We are witnessing a increase in global debt, a growing inequality in the distribution of wealth and the fragmentation of commercial and financial systems. Our goal is to ensure equal access to financial technologies and global wealth, giving everyone the opportunity to reach their full potential. “Today we begin to build a new, fair and decentralized financial system for the future.”
The platform has the potential to become a viable alternative to the current global financial system, challenging the policy of economic pressures and sanctions, and contributing to the construction of a new multipolar economic order.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
