BRICS Launching SWIFT Replacement At 2024 Summit! What's Next?
do you know what brics is planning to reveal at its October Summit this year until now analysts and experts all around the world reported that brics might be developing its own currency and a payment system like Swift however there have been no confirmations by the brics making this development doubtful now things have changed there are various reports suggesting that brics has already developed a new currency and a payment system and is waiting for the summit at this event all bricks members will unite and collectively launch a new payment system that will be the beginning of the end of dollar and Swift but what are more details what we know about this new currency and payment system so far and what should you expect let's know about that in this video so what is brics doing the brics alliance is working on its own native payment platform and the timing is key here all development is being done at this time of the year so this project can make its Deb at the Block's upcoming 2024 Summit brics wants to announce this news at the summit instead of doing it silently in other words this time bricks really want to create shock waves that will reach the West historically these Summits have served as platforms for major announcements and the introduction of this payment system could be next for example the 2024 Summit marked the Block's first expansion in over two decades welcoming Iran Egypt Ethiopia and the UA way into the group the brics payment system could have a similarly impactful debute advancing dollarization and boosting trade among member nations even if the project isn't fully completed by The Summit it's expected to be officially confirmed however earlier there has always been news about such development but no official endorsements but this time Russia's Federation Council speaker Valentina matenko confirmed that the project is progressing well the new brics payment system is designed to allow member nations to bypass the Western dominated Swift system bolstering the blocks efforts to move away from Reliance on the US dollar therefore if this payment system is adopted the West will no longer be able to enforce sanctions it's true that sanctions will be put in place but they won't be effective because the West won't be controlling the finances of the brics countries hence brics is also becoming a block where those countries who have been B by the West can join for True Independence and autonomy earlier this year the brics block officially announced the creation of this payment platform with Russian foreign minister sergy lavro making the announcement the platform is intended to reduce dependence on the US dollar by encouraging the use of local currencies for trade settlements it was said that the project is well underway with the potential for a launch at the 2024 Summit Russia's Federation Council speaker me fieno discussed the timeline saying that she spoke both with the central bank and the finance ministry and things are moving along nicely she also mentioned ongoing discussions with central banks and finance Ministries from all brics countries including new members that's because while the platform might be approved at the 2024 Summit there will at least be decisions made on when and how it should be finalized but is there any news about a currency well there are also reports that the brics payment system won't be the only thing launched at the summit it will be complemented by the launch of a brics currency which would ultimately serve to reduce Reliance on the US dollar discussions about this currency have gained momentum with more updates anticipated at the 2024 Summit brics has been actively positioning itself against Western Financial dominance by promoting dollarization policies in May 2024 both Russia and Iran confirmed their collaboration on the bricks currency project rumors about this new currency began circulating even before the 2023 annual Summit and its introduction could bring significant changes to Global Finance speculation about the brics currency's launch date suggests it could 2024 however according to a brics representative from India the currency may take longer to develop with a Target 2027 bad Singh aat shatu director of the bricks Institute in New Delhi said that the dollar is still dominant and to move away from the dollar bricks need to demonstrate strong economic growth he said that if Russia India and China continue to grow rapidly then by 2027 bricks will have a common currency here's a reminder to please like and share the video and subscribe to our channel to watch more videos on Africa's geopolitics economy and changing landscape let's continue now despite this for the the very first time bricks members can collectively make the announcement that's because Russia is desperate to get the new payment system launched that could help it Dodge sanctions already the Russian government and business Community are actively seeking innovative solutions to address challenges in banking and international payments the sanctions particularly Russia's exclusion from the Swift payment system have significantly disrupted the country's imports and exports leading to ongoing economic the restrictions on using dollars and Euros have been especially challenging given Russia's heavy Reliance on International Trade to counter these obstacles Russia developed alternative Financial systems one such system is the system for transfer of financial messages spfs launched in late 2017 as an alternative to Swift by 2023 more than 400 financial institutions adopted it additionally Russia introduced its own mer payment system as an alternative MasterCard that's what encouraged Russia to think about a collective payment system for brics if Russia could launch its own payment system all brics members could too and that would make crossb trade exceptionally easier and cheaper in a 2022 speech President Vladimir Putin criticized the existing International Payment Systems as expensive and controlled by a narrow Club of states and financial groups but what can be the new payment system well there are two proposals one is the bricks Bridge payment platform and the other is brics pay the brics bridge digital payment platform currently in development aims to decrease dependence on the dollar and Euro in international trade this platform is being designed to work with digital currencies developed by central banks leveraging blockchain technology to create a more resilient and independent Financial system cryptocurrency genes have gained significant Traction in Russia especially after the country was excluded from Swift despite the central bank's earlier calls for a total ban on cryptocurrencies in 2021 the Russian government is now considering them as a way to bypass traditional Financial systems on July 30 the state Duma Russia's lower house of parliament passed a bill legalizing crypto mining followed by another bill on February 27 that allows the use of digital Financial assets in in international payments elvar neb Alina the governor of the Central Bank of Russia stated that the use of cryptocurrencies in international trade could begin by the end of 2024 as part of these efforts the brics block is also considering Iran's proposal to link all member nations Payment Systems aiming to enhance Financial sovereignty with a resilient sanctions resistant infrastructure according to Russian Deputy foreign minister Andre rudenko ongoing discussions are focused on integrating financial markets using National currencies for payments and developing new mechanisms for Mutual settlements then comes the brics pay system a digital payment platform developed collaboratively by brics members launched in 2018 by The brics Business Council it quickly became a top priority in their annual report the platform is designed to enable seamless and secure digital transactions between member countries allowing businesses and consumers to conduct payments in their local currencies the initiative brings together experts in payments Banking and Technology from all member nations who are responsible for developing the platform introducing new features and managing relationships with Partners governments and other key stakeholders the goal of bricks pay is to reduce the cost and complexity of international payments while providing a reliable and secure method for crossb transactions it combines traditional payment systems with emerging Technologies like Central Bank digital currencies decentralized finance and tokenized assets this approach expands payment options for users within the brics Nations and potentially beyond the platform is built on key principles such as decentralization interoperability transparency by Distributing Financial flows across multiple participants rather than concentrating them in the hands of central operators brex pay enhances system stability and reduces the risk of failures the project is overseen by the heads of the financial services working groups within the brics Business Council and operates as a public private partnership with participants independently funding and developing Solutions brixs pay features an independent distributed Financial messaging system with asymmetric encryption that supports Swift cips and spf's messaging standards it also includes a message converter to facilitate communication between different payment formats additionally brex pay is expected to enable settlements in wholesale digital currency with ongoing development focused on principles for interaction with national currencies exchange rates issuance and clearing processes it should be noted that this project is in the development stage but chances are that it might be completed before the brics summit what do you think will brics launch the new payment system at the October Summit or there are no chances this year isn't it true that developing a new payment system is not rocket science and extremely easy for bricks in the comment section right below share your thoughts on how bricks pay will create shock waves for Swift do you want to watch more videos like this one if yes subscribe to our Channel and press the Bell icon next to it we have decided to bring videos on something nobody talks about African politics economy and increasing power thanks for watching and until the next video stay tuned tell us what you think in the comment section like and share the video and subscribe so that you don't miss any of our African videos it's the best way
