Key Points:
- BRICS launched its new cross-border payment system, “BRICS Pay,” on October 17 in Moscow.
- The blockchain platform aims to reduce reliance on the U.S. dollar for international transactions.
- The system supports digital currencies and is interoperable with existing payment networks.
- Full rollout is expected during the BRICS Summit in Kazan from October 22-24.
BRICS Launches ‘BRICS Pay’ at Moscow Forum
The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, has officially unveiled its much-anticipated cross-border payment system, known as “BRICS Pay.” Launched on October 17 at the BRICS Business Forum in Moscow, this blockchain-based platform is designed to simplify and enhance transactions between member countries.
BREAKING: BRICS officially unveils a new demo of its payment system, BRICS Pay. pic.twitter.com/DOrPC21uaS
— BRICS News (@BRICSinfo) October 17, 2024
During the event, attendees were provided with demo cards preloaded with 500 rubles to showcase the system’s capabilities. By scanning a QR code, participants were able to register for a BRICS Pay card and use it to purchase various goods, such as beverages and souvenirs, at designated locations within Moscow’s World Trade Center.
This launch represents a significant milestone in BRICS’ efforts to reduce its dependency on the U.S. dollar for international trade. The push for a new currency within the bloc gained momentum in 2023 when a senior Russian official urged member nations to collaborate on a system that could challenge the dollar’s dominance in global commerce. BRICS Pay is poised to support this goal by facilitating low-cost, fast transactions that could boost trade and investment between member states.
Expanding Payment Options and Future Plans
One of the key features of BRICS Pay is its ability to support transactions using digital currencies and stablecoins tied to the national currencies of member nations. Additionally, the platform is designed to be compatible with existing payment networks across the BRICS countries, allowing for seamless integration and a broader reach.
The management and governance of the platform will be handled by a Decentralized Autonomous Organization (DAO), consisting of various technological, financial, legal, and consulting firms. This structure ensures that BRICS Pay meets the diverse regulatory and legal frameworks of each member nation, further solidifying the platform’s compliance and adaptability.
The full-scale launch of BRICS Pay is scheduled to take place during the upcoming BRICS 2024 Summit in Kazan, Russia, from October 22 to 24. This summit marks the bloc’s first major gathering since its expansion earlier this year, which saw the inclusion of Saudi Arabia, Egypt, the UAE, Iran, and Ethiopia as new members. Further details on how the payment system will be rolled out across participating nations are expected to be revealed at the event.
With the official introduction of BRICS Pay, the bloc is taking a major step toward reshaping the global financial landscape, offering its member countries a more efficient and cost-effective alternative to traditional cross-border payment systems.
