• The BRICS Pay platform to launch at the 2024 BRICS Summit aims to reduce reliance on the U.S. dollar in global finance.

• The platform could challenge Western financial systems like SWIFT.

The BRICS economic alliance is gearing up for its 2024 Annual Summit, where the much-anticipated BRICS Pay platform, a payment system based on blockchain, is expected to take center stage. The platform was unveiled earlier this year. It is likely to threaten the current financial order and promote the group’s de-dollarization policy. 

BRICS Pay is a new payment system using blockchain technology. It is intended to help the BRICS countries minimize their reliance on the US dollar in international trade. Additionally, the platform will intend to enable efficient interactions among member countries and may provide a solution to the US-dominated SWIFT payment system. 

Russia Pushes for Cryptocurrency and Blockchain Solutions

The system’s development also coincides with the increasing tension between Russia and the West, especially regarding sanctions and financial measures. Consequently, Russia has paid more attention to cryptocurrencies and blockchain technology. The BRICS Pay platform is integral to this approach as it can facilitate the use of local currencies and strengthen the economic relations between the BRICS countries and their partners. 

The BRICS Pay is in line with the bloc’s objective of decreasing the use of the US dollar in international trade and finance. The data from the Atlantic Council’s Dollar Dominance Monitor shows that the dollar’s global reserve status declined to 58 % in 2024 from 72% in 2002. This decline underlines the continuing process of de-dollarisation, which BRICS Pay predicts will strengthen. 

Yury Ushakov, an assistant to the Russian president, told the state media how important the BRICS Pay project is for the future. The platform will use digital and blockchain technologies to establish a reliable and effective payment system to facilitate the bloc’s economic agenda. 

The platform’s potential extends beyond the BRICS countries, as other Global South nations could use it as a reference to reduce their dependence on the US dollar and strengthen their national currencies. This means that BRICS Pay can also provide much-needed competition to the SWIFT system and also promote the economic cohesion of the developing world. 

Platform Extends Influence Beyond BRICS Nations

The planned launch of BRICS Pay at the 2024 Summit has major strategic implications. It is a milestone toward the financial emancipation of the BRICS and other emerging economies from the current global order. As a blockchain solution for transactions, BRICS Pay can challenge Western financial organizations and enhance the role of BRICS countries in the world. 

Furthermore, the platform’s development correlates with Russia’s current interest in cryptocurrencies and digital currencies. Russia recently revealed plans to create two crypto exchanges, and stablecoins pegged to the Chinese yuan and other BRICS currencies.  Notably, Turkish President Recep Tayyip Erdogan will be attending the BRICS summit in Kazan, Russia, from October 22 to October 24. Turkey’s interest in BRICS aligns with its broader foreign policy strategy, which aims to balance relations between the East and West.