FX.co ★ BRICS payment system builds confidence and shakes up financial markets

Analysts suggest that the new BRICS payment system could be a game-changer, with the potential to reshape the global financial landscape. Are we on the edge of a major shift?

Nelson Wong, Vice President of the Shanghai Center for Strategic and International Studies, calls the BRICS payment system revolutionary. Yet, he cautions, it will need to prove itself if it hopes to be a real alternative to SWIFT. Wong emphasizes that although details are scarce, the mere creation of such a platform is already a breakthrough, as it offers an alternative to the current SWIFT system. He supposes that the system will need to stand the test of time and may face reforms before it can effectively rival SWIFT. Wong also dismisses the idea that using national currencies in trade is a backward step.

During the recent BRICS summit in Kazan, leaders discussed developing an independent cross-border settlement and depositary infrastructure, BRICS Clear. Russian President Vladimir Putin also proposed a new BRICS investment platform, calling it a "powerful tool to support national economies." Earlier, Valentina Matviyenko, Chair of the Federation Council, suggested the alliance could create a multilateral digital payment platform, BRICS Bridge.