For several years, Russia and other BRICS member nations have been working on an alternative to the Western-controlled SWIFT international settlement system. Russia was banned from SWIFT following its invasion of Ukraine, but now there is a new system emerging from BRICS that threatens to make SWIFT obsolete.
If the new payment system is a success, it will render Federal Reserve Notes (FRNs) obsolete as well. The world will no longer be held hostage by the so-called petrodollar, which reports warn could have massive global market ramifications.
The West's continued sanctions on Russia have only hastened the speed at which Russia is developing this new BRICS payment system. Its design will promote local currencies and alternative settlement methods that sidestep the U.S. dollar entirely.
Elvira Nabiullina, the governor of Russia's central bank, says 159 countries are ready to adopt the new BRICS payment system once it goes live. It will serve as an expansion to Russia's System for Transmitting Financial Messages (SPFS) platform as well as "an alternative to SWIFT."
"Similar infrastructure exists in some other countries," Nabiullina commented. "We are holding discussions on the interaction of such platforms, but here the interest and technical readiness of our partners are important."
(Related: It was late last year when Russia officially called on all BRICS nations, including those new to the alliance, to de-dollarize.)
New payment system the priority theme of upcoming BRICS 2024 Summit
Viktoria Panova, the head of Russia's BRICS Presidency Council, also commented that the priority issue at the upcoming BRICS 2024 Summit in October is the new BRICS payment system.
"Active efforts are underway to create a financial payment mechanism that would make cooperation between BRICS countries easier, maintaining their sovereign trade and economic exchanges," she said.
"This issue tops the agenda because every member of the group sees it as important."
Once the system goes live, it will provide immediate accessibility to all member nations. Once established, the system is also expected to result in expanding trade dealings for the alliance.
Depending on how well it works, there is also a solid chance that more countries will want to ditch the U.S. dollar and join themselves. Time will tell how quickly the world transitions away from U.S. dollar dominance into a new era of dollar-less global trade.
Last year's BRICS Summit marked the first time in more than 20 years that the alliance grew. It started with Brazil, Russia, India, China and South Africa and has since added on the United Arab Emirates (UAE), Egypt, Iran and Ethiopia.
In just the past two years, BRICS has grown by leaps and bounds to become a real contender in the fight against Western hegemony. Instead of Western power dominating the planet, BRICS aims to create a global governance system of multipolarity, this being Russia's envisioned new world order.
BRICS has increasingly made cryptocurrency its focus. Russia, the head of BRICS, recently passed legislation to legalize the use of cryptocurrency for trade settlements, which is enticing for the countries of the world to want to join.
Serbia is among the countries wanting to join BRICS next, along with Nigeria, Malaysia and Thailand. The 2024 BRICS Summit is expected to be "a massive one for the bloc's continued growth," to quote one media source.
It is only a matter of time before King Dollar gets reduced to rubble. Find out more at DollarDemise.com.
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