• The BRICS economic alliance is advancing its de-dollarization efforts by actively pursuing the establishment of a unified financial system in 2024.
• The proposed “BRICS Bridge” initiative seeks to integrate the digital currency systems and financial messaging platforms of member nations.

In 2024, the BRICS economic alliance is actively working on establishing a unified financial system to facilitate trade within the bloc without reliance on the US dollar. This initiative was highlighted by Russia’s Deputy Foreign Minister Sergey Ryabkov during discussions concerning the country’s chairmanship of the collective this year.

Over the past few months, the bloc has increasingly embraced the adoption of digital assets as part of its strategy to reduce dependency on the US dollar in unilateral transactions. The development of a unified payment system is seen as a significant step forward in achieving this objective.

In 2023, the BRICS economic alliance embarked on two significant initiatives: expansion and de-dollarization, both of which were prominently featured at the previous year’s Annual Summit. The alliance welcomed five new nations into its fold while reaffirming its commitment to promoting native currencies in international trade.

However, these initiatives are far from concluded, as the bloc continues to pursue growth in both areas. In line with its de-dollarization efforts, BRICS is currently working on establishing a unified financial system in 2024 to facilitate trade independent of the US dollar. This initiative is viewed as a crucial component of Russia’s Chairmanship of the alliance this year, per the Crypto News Flash report.

When questioned about Russia’s financial priorities during its chairmanship, Deputy Foreign Minister Ryabkov indicated that several options were being explored. Among these options, the development of a platform to unite the financial systems of BRICS members appears to be gaining traction.

BRICS: Interconnecting Digital Currencies and Financial Messaging Systems

In what Deputy Foreign Minister Ryabkov termed the “BRICS Bridge,” plans are underway to integrate the digital currency systems of central banks within the BRICS countries. This initiative also aims to interconnect the national financial messaging systems as part of its broader objectives.

Moreover, Ryabkov highlighted a recent face-to-face meeting earlier this year, indicating significant progress in integrating the project into the overall cooperation plans of BRICS countries.

This proposed endeavor holds strategic importance for BRICS, particularly in its efforts toward de-dollarization. A unified financial system facilitating digital currency options would greatly amplify these efforts, potentially heightening pressure on the US dollar. It’s worth noting that the US has previously stated its intention not to introduce a digital counterpart to its currency.

Nonetheless, obstacles remain. The enlargement of BRICS membership could introduce additional coordination challenges. However, it could also diminish the impact of economic sanctions and accelerate the multipolarization of the global monetary system.