Moscow Proposes Autonomous BRICS Payment System

Moscow is considering establishing an autonomous payment system for BRICS, focusing on reducing dependency on the U.S. dollar. Yury Ushakov, a Kremlin aide, disclosed this in an interview with the Russian state-owned news agency TASS on Feb. 5. BRICS comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.

While specific details are undisclosed, Ushakov hinted at the inclusion of digital currencies, potentially central bank digital currencies (CBDCs). Moscow has been working on its digital ruble. Ushakov stressed the system's importance for BRICS, citing cost-effectiveness and impartial operation.

“Creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain,” Ushakov said.

Despite the emphasis on enhancing BRICS’ prominence within the international monetary and financial system, no timeline for launching the system was provided.

Russian Finance Minister Anton Siluanov recently remarked that for BRICS countries to develop normally, the organization must consider “creating our own financial systems functioning independently of politics and ensuring trade relations between our countries.”

Moscow has been advocating for a blockchain-based solution for BRICS, particularly amid escalating Western sanctions. In September 2023, Russian Prime Minister Mikhail Mishustin emphasized the city's need to implement cross-border settlements using blockchain technology and digital assets, aiming to attract more foreign investments.