BRICS Set to Challenge SWIFT with Blockchain-Based Payment System, 159 Nations on Board

• The BRICS bloc is advancing efforts to create a blockchain-based international payment system that aims to de-dollarize, focusing on non-dollar currencies like Russia’s Ruble and China’s Yuan.
• Speculation suggests that cryptocurrencies could play a role, with Russia legalizing crypto mining and India developing a regulatory framework for digital assets.

In recent months, the BRICS bloc has intensified its efforts to establish alternative financial systems to promote de-dollarization. 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. Moreover, according to reports, this initiative could include over 159 foreign participants in the near future, reported Crypto News Flash.

Misinformation About the BRICS Payments System

Discussions about this alternative payment system have been ongoing throughout 2024. Several reports have suggested that the new system could be powered by blockchain technology. Meanwhile, it will prioritize transactions in non-dollar currencies like Russia’s Ruble and China’s Yuan.

However, misinformation has clouded the details of this initiative. A widely circulated report earlier this year claimed that 159 countries had already joined the system ahead of its official launch.

That report, which quoted Elvira Nabiullina, Governor of the Bank of Russia, was later found to be inaccurate. The Russian government has since clarified that Nabiullina’s statement was actually misquoted. In reality, she was referring to the number of foreign participants in Russia’s Financial Messaging System (SPFS), a SWIFT alternative, not to countries joining the BRICS payment system. As per the latest Crypto News Flash report, even SWIFT is moving towards tokenized assets solutions. 

RT, the Russian state-owned news network, was one of the major outlets that reported erroneous information. Following verification, RT retracted the report and issued an apology on its official Weibo account, acknowledging the mistake and clarifying the facts.

RT’s apology read, 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… After verification, this news is fake news. We deeply apologize for the release of this false news.” 

De-dollarization Efforts Take Front Seat

Despite this setback, BRICS continues to push forward with its de-dollarization agenda. According to Alla Bakina, the head of the national payment system at the Bank of Russia, the SPFS has successfully integrated over 160 foreign participants from 20 countries.

Among these are two Cuban banks, which greatly highlights the system’s growing international footprint. These countries, primarily allies of Russia, include Armenia, Kazakhstan, and Belarus.

With the BRICS bloc moving ahead with its de-dollarization initiative, there is growing speculation on cryptocurrencies playing a significant role. Russia, for instance, has legalized crypto mining. It is also expected to launch two national crypto exchanges to enable international transactions. Moreover, India is also moving toward developing a comprehensive crypto regulatory framework.