In a significant development for the BRICS economic alliance, the ‘BRICS Pay’ system was formally introduced at the BRICS Business Forum in Russia held recently as part of the 2024 BRICS summit.
In a symbolic gesture of the group’s dedication to the system’s launch, BRICS payment cards were handed out to forum participants. These promotional cards, loaded with 500 Russian rubles (around $5.20), were used for buying coffee or souvenirs at the event.
The cards showcased a double-sided design, with a QR code on one side and instructions for making payments on the other.
According to South Africa Finance Minister, Enoch Godongwana, the intention of launching BRICS Pay is not to replace existing systems but to facilitate trade using local currencies.
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The Johanessburg II declaration stated: “We task our Finance Ministers and/or Central Bank Governors, as appropriate, to consider the issue of local currencies, payment instruments and platforms… pic.twitter.com/ZU1p1KHtWt
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Godongwana explained recently that the initiative arose from a desire to boost trade among member countries, especially for nations like Russia, which have faced economic difficulties due to Western sanctions and exclusion from the SWIFT system.
“It is a payment system which facilitates a deepening of the use of local currencies,” Godongwana said, adding this was not an alternative to SWIFT.
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Key features of the system include:
- QR Code Payments
- It is designed to link national payment methods with commercial systems in member countries
- Based on blockchain and incorporates digital currencies and stablecoins, including a native cryptocurrency
- Includes a system for transmitting financial messages
- Enables trade in multiple currencies across the 100+ country bloc
The aim is to create cross-border retail support across the BRICS+ bloc, with future plans to expand into business-to-business payments and to develop the BRICS+ unit, Russia’s proposed cryptocurrency for the alliance.
According to Russia Finance Minister, Anton Siluanov, BRICS Pay will be based on modern approaches taking into account the use of digital financial assets, which makes it unique and innovative.
“This is a payment system that will allow replacing banking organizations on the one hand. On the other hand, [it will allow] to include a system for transmitting financial messages. This system is planned on new formats, approaches, taking into account the use of digital financial assets.
This is a new system design,” the minister said.
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