BRICS Pay, laBRICS Pay, launched by Brazil, Russia, India, China, and South Africa in October 2024, marks a significant shift toward global de-dollarization, challenging U.S. financial dominance and traditional systems like SWIFT. Utilizing advanced blockchain technology, BRICS Pay integrates national payment platforms into a single digital wallet, enabling efficient, low-cost, cross-border transactions in local currencies. Driven by geopolitical factors, notably U.S. sanctions, the initiative has attracted substantial global interest, potentially reshaping trade flows and reducing dollar dependency. Despite challenges related to interoperability and geopolitical resistance, particularly from the U.S., BRICS Pay’s expansion—integrating nations like Saudi Arabia, Iran, Egypt, Turkey, and Nigeria—signals a new multipolar financial order, empowering emerging economies to reclaim economic sovereignty.
A New Financial Era
In recent years, the global financial landscape has begun to shift dramatically. At the forefront of this transformation are the BRICS nations—Brazil, Russia, India, China, and South Africa—with their launch of BRICS Pay, a groundbreaking blockchain-based payment platform. Introduced in October 2024, BRICS Pay represents a strategic push towards de-dollarization, aiming to reduce global dependency on the U.S. dollar and challenge Western financial dominance, specifically targeting systems like SWIFT.
BRICS Pay leverages advanced blockchain technology, utilizing a decentralized cross-border message system (DCMS). This technological framework supports up to 20,000 transactions per second with remarkably low fees, facilitating secure, transparent, and efficient international transactions. By integrating existing national payment networks such as China’s UnionPay, Russia’s Mir, and India’s RuPay into one unified digital wallet, BRICS Pay significantly enhances ease of use and accessibility, particularly for SMEs and unbanked populations in emerging economies.
China’s pilot program, led by the state-supported “Tech Power” initiative, has already demonstrated the system’s potential, achieving transaction cost reductions between 30-50% and faster settlement times. This pilot sets a powerful precedent, illustrating BRICS Pay’s capability to streamline cross-border transactions without reliance on the dollar.
The geopolitical impetus behind BRICS Pay is clear. In response to sanctions, notably those imposed on Russia since 2022, BRICS nations have accelerated efforts to establish financial independence. By allowing direct trade settlements in local currencies, BRICS Pay shields participating nations from dollar volatility and geopolitical financial leverage, enhancing economic sovereignty. Brazil’s President Lula has openly advocated for a BRICS-wide currency to counterbalance the dominance of the dollar, highlighting a united front in seeking financial autonomy.
Already, 159 countries have expressed interest in joining or collaborating with BRICS Pay, indicating a profound global shift away from dollar-centric finance. For instance, Russia now conducts approximately 90% of its oil trade with China and India using yuan and rupees, underscoring the declining dominance of dollar-denominated transactions.
However, the path to widespread adoption faces substantial challenges. The integration of disparate national systems, such as Brazil’s ELO and South Africa’s SASSA, demands significant regulatory alignment and technical interoperability. Additionally, geopolitical tensions are high; former U.S. President Trump notably threatened severe tariffs against BRICS nations adopting de-dollarization measures, underscoring strong U.S. resistance.
Economic risks include potential currency fragmentation, leading to increased volatility in exchange rates and complicating international commerce. There are also concerns about the system’s heavy reliance on China’s technological and economic influence, potentially creating imbalances within the BRICS partnership.
Looking forward, BRICS Pay plans to expand significantly. Nations like Saudi Arabia, Iran, and Egypt are preparing to join, bringing critical strategic depth and economic influence. Moreover, Turkey and Nigeria have expressed interest, positioning BRICS Pay as a viable financial alternative for the broader Global South. Integration with central bank digital currencies (CBDCs) is also anticipated, further streamlining international settlements.
By 2030, analysts predict that BRICS Pay could facilitate 15–20% of global trade settlements, significantly eroding SWIFT’s historical dominance. Ultimately, BRICS Pay represents not merely a financial innovation but a geopolitical shift toward a multipolar economic world order.
The launch of BRICS Pay sends a definitive message: the era of dollar supremacy is waning, giving rise to a new, decentralized, and inclusive global economic landscape where emerging economies are empowered to reclaim monetary sovereignty.
Nasir Kazeroun
Brics Federation