Explanation - BRICS Pay represents the grouping's most concrete step to reduce reliance on the SWIFT network, a Belgium-based system used by over 11,000 banks for global money transfers. SWIFT's control by G-10 central banks, especially under U.S. influence, has long been criticised for allowing the weaponisation of the global financial system through sanctions. The prototype of BRICS Pay was demonstrated in Moscow in October 2024, marking a milestone in the bloc's efforts to build an independent payment ecosystem.
Development: The project is being developed by the BRICS Payment Task Force (BPTF), which aims to ensure interoperability between national payment systems.
Technological Backbone: Each BRICS nation possesses robust digital payment infrastructure:
- India - Unified Payments Interface (UPI)
- China - Cross-Border Interbank Payment System (CIPS)
- Russia - System for Transfer of Financial Messages (SPFS)
- Brazil - Pix Instant Payment System
- South Africa - South African Multiple Option Settlement (SAMOS)
Together, these systems form the technological backbone of BRICS Pay, offering a credible alternative to SWIFT within the bloc and potentially to other developing economies.
Explanation - BRICS Pay represents the grouping's most concrete step to reduce reliance on the SWIFT network, a Belgium-based system used by over 11,000 banks for global money transfers. SWIFT's control by G-10 central banks, especially under U.S. influence, has long been criticised for allowing the weaponisation of the global financial system through sanctions. The prototype of BRICS Pay was demonstrated in Moscow in October 2024, marking a milestone in the bloc's efforts to build an independent payment ecosystem.
Development: The project is being developed by the BRICS Payment Task Force (BPTF), which aims to ensure interoperability between national payment systems.
Technological Backbone: Each BRICS nation possesses robust digital payment infrastructure:
- India - Unified Payments Interface (UPI)
- China - Cross-Border Interbank Payment System (CIPS)
- Russia - System for Transfer of Financial Messages (SPFS)
- Brazil - Pix Instant Payment System
- South Africa - South African Multiple Option Settlement (SAMOS)
Together, these systems form the technological backbone of BRICS Pay, offering a credible alternative to SWIFT within the bloc and potentially to other developing economies.