BRICS’ Payment Power Play: A World Beyond SWIFT
The BRICS alliance, a global economic partnership comprising Brazil, Russia, India, China, and South Africa, is reportedly exploring the development of a global payment infrastructure that could operate independently of the conventional banking standard known as SWIFT.
As per a recent report by the Russian state-funded news outlet TASS, finance ministers from BRICS member nations are currently assessing the feasibility of establishing a unified payment network. This matter is expected to be formally deliberated at the upcoming BRICS meeting scheduled for next year.
Anton Siluanov, Russia’s Finance Minister, emphasizes that this network would bolster efforts to create autonomous payment messaging systems. Siluanov noted, “We are endeavoring to implement our own financial messaging system, the SPFS, while our Chinese counterparts have their own system.
Other BRICS nations are either developing their systems or already have them in place. Consequently, this issue will be subject to discussion among the financial authorities and agencies of BRICS member states.”
This development follows BRICS’ recent decision to expand its membership to include Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the UAE.
When questioned about Russia’s outlook on BRICS’ future potential, Siluanov highlighted the bloc’s focus on reducing dependencies on Western financial systems and moving towards the Southeast, a trend he expects to persist in the coming years.
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SWIFT plays a pivotal role in the global banking infrastructure, facilitating secure money-related communications among banks. Notably, in March 2022, SWIFT, which is primarily owned by banks, complied with the European Union’s request to suspend several Russian banks.
In a recent statement, South Africa’s Finance Minister, Enoch Godongwana, expressed that a BRICS-centric payment system aims to promote trade in local currencies rather than relying on the US dollar. Nevertheless, he acknowledged that implementing such a system would be challenging and emphasized that it is not intended as a direct challenge to SWIFT.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
