Brics Pay Aims to Diversify Global Payments Away from Dollar
The Brics summit in New Delhi will be attended by leaders from China and Russia, but the most important news may come from the launch of Brics Pay, an independent payments system that doesn't rely on the US dollar.
Brics emerged at the beginning of the century as a group with Brazil, Russia, India, and China as its original members. It has since expanded to include 10 partner states, representing nearly half of the world's population and about 40 per cent of the global economy.
The new payments system will be launched this weekend, along with Brics Clear, a financial settlement system similar to Euroclear, and Brics Bridge, which will allow central banks to trade directly in their own digital currencies. This is seen as a way for Brics member states to continue trading with each other even if the US imposes sanctions.
Brazilian foreign minister Mauro Vieira has said that Brics Pay is not an effort at de-dollarisation, but rather a new way to promote trade and provide faster, cheaper transactions between countries. He emphasized that it's not about replacing the dollar as the world's reserve currency, but rather creating alternative options.