New Digital Payment Platform in the Making for BRICS Countries.

Russia’s Finance Ministry and the Central Bank of Russia are set to propose new financial initiatives to BRICS, aiming to transform the international monetary and global financial system. The main focus will be on creating a new digital BRICS Bridge payment platform as an alternative to the US dollar. This proposal is still in the draft stage and could be introduced at the upcoming summit in October 2024.

The plan includes not only the introduction of a new digital platform but also a series of financial recommendations. The aim is to establish a multi-sided digital payment platform that could serve as an alternative settlement option, reducing the reliance on the US dollar. This move is part of Russia’s de-dollarization strategy, encouraging BRICS nations to adopt the new BRICS Bridge payment platform.

Furthermore, the Russian Finance Ministry and the Bank of Russia have confirmed the development of the BRICS Bridge payment platform, which is expected to be finalized by the end of 2024. The initiative will be included in a report to be presented to BRICS, focusing on enhancing the international monetary and financial system through various recommendations and initiatives.

The proposed platform aims to strengthen financial ties among BRICS member states and boost mutual trade turnover. By introducing a multi-sided digital payment platform, the BRICS nations can reduce their dependence on the US dollar and pave the way for a more diverse global financial landscape.

As developing countries like BRICS move away from the US dollar, sectors in the US could be impacted. The dominance of the US dollar in global trade may face challenges as more nations embrace alternative currencies and payment platforms. This shift highlights the changing dynamics of the global financial system and the importance of diversifying currency options.

The upcoming BRICS summit in October 2024 will be a crucial opportunity to discuss and potentially implement the new digital payment platform, signaling a significant step towards reshaping the international monetary and financial system.