159 Participants to Embrace New Payment System

• A Russian official has corrected a widely reported statement that a new payments system targeting BRICS nations had gained 159 new countries.
• The official revealed that the system had gained 159 new ‘participants’ from over a dozen countries, which is still a big stride in the BRICS-led de-dollarisation movement.

Over the past 18 months, the development of alternative financial systems that don’t depend on the US dollar has gained steam. BRICS, an economic bloc led by some of America’s fiercest foes and rivals is leading the charge, with its alternate system set to bring over 150 participants onboard once it launches.

Throughout this year, one report after another has emerged about the proposed payment systems. Some have reported that the new system will rely on blockchain technology, while others say it will prioritise settlements in the ruble and the yuan.

One such report earlier this year claimed that the new system had already onboarded 159 countries even before its official launch. The report quoted Elvira Nabiulina, the governor of the Bank of Russia speaking at an industry event.

不带美丽国玩了？
俄罗斯中央银行行长纳比乌琳娜宣布，金砖国家新支付系统将于10月份上线，159个国家将可以采用这个新系统支付，完全可以将美元排除在外。 pic.twitter.com/JlvNqrz1Fk

— 王班（互fo） (@wangban666) August 19, 2024

However, it has now emerged that the governor was misquoted. A Russian government official corrected the reporting, which had been taken up by respected outlets like Russia Today (RT), the Russian state-owned news network.

RT retracted the report and published an apology on its Weibo account, stating in part, “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 – “159 countries will adopt the new payment system of the BRICS countries.” After verification, this news is fake news. We deeply apologize for the release of this false news. ”

BRICS Marches On

While the news on the 159 countries may have been misreported, BRICS’ efforts are in high gear to de-dollarise its members and in due time, the rest of the world. In fact, the report had misquoted Governor Nabiulina when she stated:

Russia has a Financial Messaging System that is an alternative to SWIFT. Some other countries have similar infrastructure. We are discussing the interaction of such platforms…159 foreign participants from 20 countries [have signed up].

Alla Bakina, the head of the national payment system at the Bank of Russia reiterated the message, telling TASS, “Today, more than 160 foreign participants from 20 countries are connected to this system (SPFS – TASS), including two Cuban banks, which are almost direct participants.”

To have 20 countries already on Russia’s SWIFT alternative is a big step. Predictably, these initial members are mostly Russia’s allies, from Armenia and Kazakhstan to Armenia and Belarus. However, the expansion will continue and it will aid the de-dollarisation the other BRICS members have embarked on.

Crypto could play a big part in this movement. Already, Russia has amended legislation to legalise crypto mining and is reported to be launching two national crypto exchanges to facilitate international crypto payments.

Recommended for you: