BRICS nations revealed a demo version of their BRICS Pay system at the Business Forum in Moscow. Organisers handed out demo cards loaded with 500 rubles to participants. Attendees used the cards to make purchases at selected locations in the World Trade Centre. The unveiling of this demo card marks a significant step towards BRICS’ ambition of financial independence from Western systems.
Preparing for the 2024 BRICS Summit
The demo of BRICS Pay comes just days before the highly anticipated BRICS 2024 Summit, set to take place from October 22-24 in Kazan, Russia. The organisers expect this summit to provide more details about the future of the payment system and the bloc’s financial strategies. Analysts predict that BRICS Pay could evolve into a blockchain-based platform, further boosting the group’s move towards greater financial autonomy.
Expansion of BRICS Membership
In 2024, the BRICS bloc includes Brazil, Russia, India, China, and South Africa. Recent additions are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. This expanded membership highlights BRICS’ increasing influence in global affairs. The bloc aims to counter Western economic dominance and promote alternatives to the dollar in global trade.
De-dollarization Efforts Intensify
The unveiling of the BRICS Pay demo aligns with the group’s broader de-dollarization agenda. In 2023, non-dollar currencies accounted for about 20% of global oil trades, highlighting a growing shift away from dollar dependency. Organisers of the upcoming summit are expected to further elaborate on how BRICS will continue to challenge dollar hegemony and introduce mechanisms like a possible gold-backed currency.
Financial Autonomy Gains Momentum
Experts view BRICS Pay as a critical tool in achieving the bloc’s long-term goal of financial independence. The demonstration in Moscow signals the seriousness with which the group is approaching the development of its financial infrastructure. As BRICS expands, the adoption of such systems could reshape global trade dynamics, offering an alternative to Western financial structures.
Implications for Global Markets
The success of BRICS Pay and the bloc’s de-dollarization efforts could have far-reaching effects on global financial markets. With the inclusion of resource-rich nations like Saudi Arabia and Argentina, the bloc’s push for financial autonomy could lead to new payment systems gaining traction in global trade. The 2024 Summit will likely outline how this transition will unfold and the potential for a new currency to emerge.
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