Russia determines the global expansion of the BRICS payment network: Monopol Swift threatened?

While geopolitical tension redraws the world leveling, BRICS accelerates the implementation of their own payment network. This infrastructure, piloted by Russia, aims to emancipate from Swift and open a financial path outside Western control. Notification of its availability to countries that are not a member means strategic rupture. In addition to the regional tool, BRICS PAY becomes a lever for global influence and a strong signal in favor of a multipolar monetary rules.

BRICS PAY NETWORK OPEN THE WORLD

Russian Foreign Minister, Sergei Lavrov, confirmed that the future BRICS payments network, which is still completed, will be accessible to the third countries.

In fact, during an official statement he said that ” Countries that are not members of BRICS will be able to use this payment system as soon as it runs ».

This opening is an important strategic expansion for infrastructure originally considered to be a regional integration tool.

The aim of such a system is to strengthen the autonomy of developing economies in the face of the hegemony of the fast system system, often perceived as a lever of Western influence. Several characteristics give a BRICS system of potential payout for attraction:

• Regional interoperability: The network aims to connect national BRIC members such as Mir (Russia), Rupay (India) or Cips (China);
• The opening of countries that are not a member: the system architecture is designed to integrate third states from its implementation;
• Sanction municipalities: liberation from the channels dominated by the United States and Europe can continue without obstacles;
• Promotion of national currencies: regulation of transactions would be carried out without a dollar browsing directly by the currencies of the countries involved.

This initiative could therefore attract nations that would like to provide their international financial flows outside the western fold. It remains to verify your technical robustness and its ability to integrate into existing international standards.

Strategy de -dollarization with still fuzzy outlines

In addition to the technological component, the BRICS Pay challenge is also cash. The extension of the system to a third country fits into the global movement to reduce the dependence on the US dollar.

In this regard During her intervention, Sergei Lavrov spoke about the need ” To develop an independent payment system based on the use of national currencies and outside the control of Western structures ».

However, if political will is manifested, the implementation promises to be more complicated. The internal differences between the members of the BRIC alliance, especially between China and India, complicate the prospect of a common currency.

Currently, the expected solutions are more based on the interconnection of existing national payment systems than on the creation of a single cash tool. At the same time, the current superiority of the dollar, which still represents most of the global exchange reserves, a structural obstacle that is difficult to do in the short term.

However, this progressive strategy of dedollarization, although consistent with current multipolar dynamics, could generate friction, both inside the block and external partners.

The credibility of the BRICS payment system for international will depend on its ability to demonstrate its reliability, safety and compatibility with the needs of economies that would consider its acceptance. In the medium term, this initiative transmitted by Russia could accelerate the fragmentation of the global financial system to regional or political blocks, each with its own infrastructure settlement. It remains to be determined whether this trend will lead to a real balance of balance or whether it will strengthen diversification only without questioning the current monetary rules.

Luc Jose A.

A graduate of the Toulouse and the Blockchain Consultant Certification certification holder and I joined the adventure of Cointribuna in 2019. I convinced of the potential of blockchain to transform many economy sectors, committing to raising awareness and informing the general public about how the ecosysty developed. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

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