The BRICS payment system has officially launched, marking a pivotal moment in the global financial landscape. This new network connects central banks from key member countries, including China, India, Egypt, and the UAE, and aims to reduce dependence on the US dollar for international trade. According to the results published in the material, this initiative is expected to enhance economic cooperation among the member states.
Brazil's Initiative and Pix Technology
The initiative, supported by Brazil, leverages the country's Pix instant transfer technology, enabling the system to process up to 20,000 messages per second. This decentralized messaging framework allows each participating nation to retain control over its network nodes, enhancing security and operational efficiency.
Impact on BRICS Trade and Global Finance
As a result of this new payment system, over 60% of mutual trade among BRICS nations has transitioned to local currency settlements. This shift not only challenges the longstanding dominance of the US dollar in global trade but also signifies a move towards a more multipolar financial system. It reflects the growing economic influence of BRICS countries on the world stage.
Recently, Russia has been advancing its digital ruble initiative to enhance trade among BRICS nations, complementing the newly launched BRICS payment system. For more details, see more.
