BRICS - Is Global Dominance Here?
October 22, 2024
BRICS Targets Economic Independence Through Digital Currencies
As the BRICS summit in Russia begins today, the bloc’s focus is firmly on strengthening economic cooperation and reducing reliance on Western financial systems, particularly the US dollar. Among the key developments is a growing push towards digital currencies and new financial platforms that promise to reshape the global economic landscape.
Putin Advocates for Digital Currencies to Benefit BRICS and Developing Nations
One of the significant discussions revolves around BRICS’ ongoing efforts to reduce dependency on the US dollar in international transactions. Russian President Vladimir Putin has been a strong advocate for digital currencies as a tool to benefit both BRICS members and developing nations. As part of these efforts, the bloc is working on a SWIFT-like financial messaging system to support digital currency use for funding high-growth investment projects.
Pay Platform to Challenge Western Financial Systems
The introduction of the BRICS Pay platform is another critical milestone for the group. This blockchain-based payment system, designed to facilitate cross-border transactions, is expected to play a pivotal role in reducing reliance on Western financial systems. Russia and China, in particular, have championed BRICS Pay as a way to bypass US sanctions and decrease the group’s dependence on the dollar. This platform is part of a broader strategy aimed at asserting greater economic independence for BRICS nations.
Expansion Signals Growing Influence
Beyond digital currencies and payment systems, the summit will also address BRICS expansion. Putin has announced the inclusion of new members—Egypt, Ethiopia, Iran, Saudi Arabia and the UAE—into the bloc, signalling its growing influence. Over 30 countries have expressed interest in cooperating with BRICS, and discussions at the summit will likely explore further expansion.
Driving Global Economic Growth
Putin has emphasised that BRICS, with its large and fast-growing economies, is poised to generate the majority of global economic growth in the coming years. In line with this, Russia has put forward new financial initiatives, including a joint cross-border payments system and a reinsurance company to further support economic integration within the group. Additionally, Putin called on the New Development Bank, BRICS’ multilateral development institution, to increase investment in technology, infrastructure, e-commerce, and artificial intelligence across the Global South.
BRICS Moves Toward a New Economic Order
As BRICS leaders gather in Kazan for the summit, the bloc’s ambitions are clearer than ever. By introducing digital currencies, expanding membership, and launching platforms like BRICS Pay, the group is positioning itself as a counterbalance to Western financial dominance. The focus on greater economic independence, particularly from the US dollar, marks a strategic shift that could have far-reaching implications for global trade and finance. With BRICS poised to drive much of the world’s economic growth in the coming years, its decisions at this summit will be closely watched. We will be back with updates later on in the week.
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