The BRICS nations, which include Brazil, Russia, India, China, and South Africa, are working on a new payment platform that could potentially replace the US dollar. This new system, called the “BRICS Bridge,” is being discussed by central banks and finance ministries across all BRICS countries.
A Big Deal for the Global Economy
Valentina Matviyenko, the Speaker of Russia’s Federation Council, has confirmed that the BRICS Bridge is gaining traction. She said that discussions are ongoing with colleagues from central banks and finance ministries of all BRICS countries, including new members. Matviyenko believes that if successful, the BRICS Bridge could have a significant impact on the global financial system.
Russia Leads the Charge
Russia is leading the initiative, having recently developed its own payment system to combat Western sanctions. The BRICS group has been working on a new currency, potentially backed by gold, to reduce its dependence on the US dollar.
Expansion of BRICS
In 2023, the BRICS group expanded to include Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates. This expansion strengthens the group’s position as a potential alternative to the US-dominated global financial system.
The Future of the BRICS Bridge
While the exact timeline for the BRICS Bridge’s launch is unclear, Matviyenko suggests that a decision on its finalization could be made in October. This new payment system could significantly alter the global financial landscape and reduce the influence of the US dollar.
