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BRICS Pay

06.11.2025

 

BRICS Pay

 

Context
 At the 16th BRICS Summit in Kazan (2024), member nations launched the BRICS Cross-Border Payments Initiative—BRICS Pay—to reduce reliance on the U.S.-led SWIFT system and promote a more multipolar, inclusive global financial order.

 

About the News

  • Western Dominance: SWIFT, linking 11,000 institutions across 200 nations, is largely controlled by the U.S. and Europe, granting them global financial influence.
     
  • Sanction Exposure: Russia’s 2022 SWIFT ban after the Ukraine war showed how dependent nations are on Western systems.
     
  • BRICS Response: Members and BRICS+ partners like Iran began creating independent mechanisms to protect financial sovereignty.
     
  • Institutional Roots: The 2014 Fortaleza Summit initiated financial autonomy through the NDB and Contingent Reserve Arrangement.
     
  • Kazan Declaration (2024): Marked BRICS Pay’s launch, emphasizing digital sovereignty and reduced dollar dependency.
     

 

 

 

 

BRICS Pay

Concept:
 A digital, interoperable, decentralised payment platform for secure, low-cost transactions among BRICS and partner nations.

Key Features:

  • Interoperability: Links national systems—India’s UPI, China’s CIPS, Russia’s SPFS, Brazil’s Pix.
     
  • Decentralisation: No central authority, reducing systemic risks.
     
  • Multi-Currency Use: Enables local currency trade, cutting dollar dependence.
     
  • Equal Governance: Shared decision-making among members.
     
  • Regulatory Standards: Adheres to global KYC and AML norms.
     

Objectives:

  • Promote financial sovereignty and inclusion.
     
  • Cut transaction costs for SMEs.
     
  • Align with UN SDGs on innovation and development.
     
  • Complement existing payment systems.


 

Aspect

SWIFT

BRICS Pay

Control

G10 central banks (mainly U.S. & EU)

BRICS Business Council (decentralised)

Architecture

Centralised

Decentralised

Currency Basis

Dollar-dominated

Multi-currency, local settlements

Inclusivity

Oriented toward Western systems

Designed for Global South inclusion

Approach

Monopoly-driven

Cooperative and multipolar

 

Challenges

  • Diverse Interests: Rival systems (UPI vs CIPS) may slow adoption.
     
  • Technical Hurdles: Ensuring cybersecurity and platform compatibility.
     
  • Geopolitical Issues: India–China tensions could impact cooperation.
     
  • Regulatory Complexity: Difficult to align AML and data laws.
     
  • Western Resistance: U.S.–EU pushback may limit outreach.
     
  • Limited Expansion: Needs engagement with ASEAN, African Union.
     

 

Way Forward

  • Phased Rollout: Start with bilateral settlements, expand gradually.
     
  • Institutional Ties: Link BRICS Pay with NDB for liquidity support.
     
  • Fintech Charter: Standardise rules and tech norms.
     
  • Tech Integration: Use blockchain and AI for secure monitoring.
     
  • Inclusive Growth: Bring in more BRICS+ partners.
     
  • Balanced Engagement: Cooperate with Western systems for stability.
     

 

Conclusion

BRICS Pay signifies a major move toward a decentralised and inclusive financial system. By fostering autonomy, innovation, and equity, it seeks to democratise global payments and build a resilient, multipolar financial order rooted in shared growth and transparency.

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