The BRICS economic alliance is making significant strides towards developing a unified financial system in 2024 for dollar-less trade within the bloc. This ambitious plan was discussed by Russia’s Deputy Foreign Minister Sergey Ryabkov as a crucial part of the country’s 2024 Chairmanship of the collective this year. The alliance, which consists of Brazil, Russia, India, China, and South Africa, has been actively embracing digital asset adoption in the first four months of the year as a key strategy to circumvent the necessity of using the US dollar in unilateral transactions.
The implementation of a unified system for payments within the BRICS bloc would further enhance their efforts to reduce reliance on the US dollar. This move comes as part of the alliance’s broader initiatives of expansion and de-dollarization, which were highlighted at last year’s Annual Summit. During that summit, the alliance welcomed five new nations into its ranks and reaffirmed its commitment to promoting native currencies in international trade.
The development of a unified financial system for dollar-less trade in 2024 is a crucial step towards achieving the alliance’s de-dollarization goals. Russia’s Chairmanship of the alliance this year has placed a strong emphasis on this initiative, with Ryabkov mentioning that several options were considered, including the creation of a platform to unite the financial systems of BRICS members.
Ryabkov referred to this initiative as the “BRICS Bridge,” which would involve integrating the existing digital currencies of central banks in BRICS countries and connecting national financial messaging systems. The project has already seen progress, with a face-to-face meeting taking place earlier this year, indicating that it is well integrated into the overall cooperation plans of the alliance.
The development of a unified financial system within BRICS would not only enhance the de-dollarization efforts but also increase pressure on the US dollar, which the US has stated will not have a digital counterpart. This move signifies a significant shift in the global financial landscape and underscores the growing influence of the BRICS alliance in shaping the future of international trade and finance.