A few weeks ago, Russian diplomat Roman Babushkin mentioned information on the BRICS plan to exit the dollar. This consisted of focusing on the establishment of a payment system, typical of the organization. According to the latest news, the group’s monetary strategy is not limited to that.
BRICS want to get rid of SWIFT
We have known for months now that the BRICS no longer want the American dollar. They are therefore actively working to get rid of it. Several options have been discussed to achieve this, including the creation of a common currency.
This is an option which is no longer relevant since, recently, the idea of a payment system limiting dependence on the dollar has emerged. We now know a little more about this project which actually concerns SWIFT. As a reminder, this is the global network used by financial institutions to send information regarding financial transactions.
In the last news, finance ministers of BRICS member countries are reportedly actively exploring the possibility of establishing a unified payments network. The latter having the ambition to do without the one who currently dominates, and for decades, global financial relations, namely SWIFT.
For the moment, the question is being discussed, especially since several options are available to the group of countries. And for good reason, Russia and China each have a specific payment mechanism. This is particularly what Anton Siluanov, the Russian Minister of Finance, explains.
“We are working to introduce our financial messaging system, SPFS, while our Chinese counterparts have their own systems and other BRICS countries have their own systems or are developing them. This issue therefore deserves to be discussed by the financial authorities and agencies of the BRICS member states,” he indicated.
Break all ties with the West!
The question arises as to which payment system would be popular as an alternative to the SWIFT network. One thing is certain, however. This project is not only intended to support the BRICS plan to exit the dollar.
For the group of countries, it is a question of definitively cutting ties with the West. According to the Russian Finance Minister, the goal is to “the elimination of all links between the West and the South-East”. A West which did not hesitate to use SWIFT as a means of pressure, and especially of sanction against Russia in the context of the conflict with Ukraine.
But the challenge is great. It is true that such a system could strengthen trade carried out in local currencies to the detriment of the dollar. The implementation of such a mechanism remains particularly complex.
Regardless, BRICS is poised to reshape the international financial landscape. The latter involves geopolitical issues which could allow them to assert their influence and autonomy on the international financial scene. This is a development that the crypto industry is following very closely, with its interests also at stake.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
