In recent months, the BRICS bloc has been working extensively to push for an alternate financial system in an effort to dethrone the monopoly of the dollar.
This economic alliance, consisting of Brazil, Russia, India, China and South Africa, has been working on creating a seamless international payment system using blockchain or other modes.
There are even many media outlets that report there are already 159 countries who are ready to adopt the new BRICS payment system when it goes on.
Rumours surrounding this new alternative payment system have been ongoing throughout 2024, with some speculating that the new system could be powered by blockchain technology. But it seems that misinformation has clouded the details of this initiative.
Among the many other rumours are claims that 159 countries have already joined the system ahead of its official launch. This statement was a misquote from Elvira Navuillina, the Governor of the Bank of Russia who was actually referring to the number of foreign participants in Russia's Financial Messaging System (SPFS).
SPFS is an alternative to SWIFT, not a payment method offered to BRICS members.
RT, the Russian state-owned news network, was one of the major outlets that promulgated this false information. Since then, RT has restricted the report and apologized for the erroneous report.
RT wrote on its Weibo account:
"We are deeply sorry to inform you that on August 17, 2024, Russia Today(RT) released a piece of news on its official Weibo account... After verification, this news is fake news. We deeply apologize for the release of this false news."
While SPFTS may not have secured 159 countries to use its system, it has definitely hit a remarkable milestone by successfully integrating over 160 foreign participants from 20 countries.
Notably, the participants include two Cuban banks, which greatly highlights the system's growing international footprint. These countries, primary allies of Russia, include Armenia, Kazakhstan, and Belarus.
As the BRICS bloc advances its de-dollarization efforts, speculation is mounting about the potential role of cryptocurrencies in this shift. Russia has already legalized crypto mining and is expected to launch two national crypto exchanges aimed at facilitating international transactions.
Meanwhile, India is progressing toward the establishment of a comprehensive regulatory framework for cryptocurrencies, signaling the growing importance of digital assets in the global economy.
On July 30, 2024, the Russian State Duma passed a key bill allowing the use of cryptocurrencies in cross-border payments. This marks a major shift in Russia's attitude towards cryptocurrencies.
JinseFinance126 nations will attend the BRICS conference in Moscow, aiming to reduce reliance on the US dollar and promote local currencies, ahead of the October BRICS Summit.
Huang BoRussian media RT previously released news that 159 countries would adopt the new BRICS payment system. This was later confirmed to be fake news. The media has issued an apology statement on Weibo.
MiyukiNabiullina, the governor of the Central Bank of Russia, said that she is discussing integrated payments with the BRICS alliance, and 159 countries have responded to join the new SPFS system.
MiyukiBRICS seeks to reshape global trade by reducing reliance on the US dollar, developing new payment systems, and expanding its membership to include countries like Egypt, UAE, and Malaysia.
ZeZhengChina cuts US Treasuries by $74B in a year, lowest since '09. Minor reductions by India, Brazil, Saudi Arabia. Russia-China trade shifts from dollar, CIS trade surpasses $100B.
EdmundSerbia may join BRICS, diversifying the alliance. Its economy is forecasted to grow, but structural reforms are needed. BRICS aims to reshape global trade.
SanyaThe expansion of the BRICS alliance and the shift towards local currency trade mark a significant reorientation in global economic dynamics. As over 20 nations express interest in joining BRICS, the potential departure from the US dollar in trade raises concerns about its impact on the American financial sector. The upcoming 2024 BRICS summit could indeed be a turning point, challenging the dominance of the US dollar and reshaping global trade dynamics.
BerniceGlobal adoption of CBDCs, with over 130 countries involved, poses a significant threat to the US dollar's dominance in international finance. As the BRICS alliance advances alongside CBDC developments, 2024 emerges as a pivotal year defining the dollar's future amidst escalating de-dollarization efforts.
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Hui Xin