The BRICS economic bloc is progressing towards a digital payment platform, Russia’s Federation Council Speaker Valentina Matviyenko has revealed. The initiative, named BRICS Bridge, aims to establish an independent financial system. This system could mitigate dependency on Western institutions, especially amid sanctions and Russia’s SWIFT disconnection.

BRICS Moves Forward With Digital Payment Platform Initiative

The BRICS digital payment platform is advancing steadily, Russia’s Federation Council Speaker Valentina Matviyenko revealed at a press conference on Thursday, Tass reported. She was quoted as saying:

The creation of the independent financial payment platform BRICS Bridge, a standalone mutual payment system on a firm joint platform, is now being discussed within BRICS.

“I have spoken both with the central bank and the finance ministry. Things are moving along nicely,” Matviyenko said, adding: “It is being discussed with colleagues from central banks, finance ministries of all BRICS countries, including new members.” She mentioned that Russia, as the current BRICS chair, is overseeing this initiative.

“If it works it will be a bombshell globally, in the best sense,” Matviyenko opined. She anticipated this issue would be discussed at the BRICS heads of state summit in Kazan in October. “Perhaps it will be approved then, or at least the discussions will lead to a decision on when and in which format it should be finalized, meaning this is no longer just an idea, it is moving forward in practice,” she stressed.

Faced with sanctions and being cut off from SWIFT, the Bank of Russia has created its own payment system, now adopted by many countries. Matviyenko remarked optimistically, “There is a light at the end of every tunnel.” Alexander Babakov, Deputy Chairman of the Russian State Duma, recently emphasized the need for a BRICS alternative to the SWIFT messaging system to reduce reliance on Western institutions and simplify non-dollar transactions.

Meanwhile, the BRICS economic bloc is considering Iran’s proposal to link all member nations’ payment systems, enhancing financial sovereignty with a resilient, sanctions-resistant infrastructure. Discussions include integrating financial markets, using national currencies for payments, and new mechanisms for mutual settlements, according to Russian Deputy Foreign Minister Andrey Rudenko.

Source : Bitcoin News - Aug 3, 2024