- Interest in BRICS and Its Expansion
- New BRICS Pay Payment System
- US Stance on Cryptocurrencies
Russian President Vladimir Putin met with top BRICS security officials at the Konstantinovsky Palace in Saint Petersburg. This meeting is part of a two-day security summit, with Russia holding the presidency for the year.
Interest in BRICS and Its Expansion
Vladimir Putin mentioned that 34 countries have shown interest in joining BRICS. The group, which started with Brazil, Russia, India, China, and South Africa, has now added Iran, Egypt, Ethiopia, and the UAE. BRICS now represents nearly 46% of the world's population, accounts for 36% of global GDP, and handles 25% of global trade. Emerging markets, frustrated with Western financial dominance, are increasingly drawn to BRICS. The founding members aim to reform global institutions like the United Nations, the IMF, and the World Bank, making them less controlled by the West and the US.
New BRICS Pay Payment System
One major topic discussed was the upcoming launch of a new payment system called BRICS Pay, which is supposed to help member countries trade using their own currencies. The system is expected to launch in October, with 159 participants from over 20 countries involved. It’s designed as a blockchain alternative to SWIFT. Russia has already created its own alternative to SWIFT, known as SPFS. Recent US interest rate hikes have also caused money to flow out of many Global South countries, worsening their economies. BRICS countries see these new payment systems as a way to avoid relying on the dollar.
US Stance on Cryptocurrencies
Though BRICS hasn’t officially adopted cryptocurrencies like Bitcoin for trade, talks about digital assets are happening. Russia and China are both interested in blockchain technology. In the US, Donald Trump, once a critic of cryptocurrency, has made a complete 180. His 2024 presidential campaign is now pro-crypto, and he’s vowed to make the US the 'crypto capital of the planet' if he gets back in office. His latest venture, World Liberty Financial, launching on September 16, is a crypto lending business. Trump has also suggested that the US should create a Bitcoin reserve and keep the $5 billion worth of Bitcoin the government has seized. He has shown support for decentralized finance (DeFi) and opposes centralized digital currencies like Central Bank Digital Currencies (CBDCs).
Vladimir Putin's meeting with BRICS security officials highlights the growing interest in the group from other countries. The launch of the BRICS Pay payment system is expected to be a significant step towards strengthening economic cooperation among member countries and reducing their dependency on the dollar.
