In response to western sanctions on some members, BRICS countries have accelerated the development a new independent international payments system.
. BRICS PAY, a groundbreaking initiative aimed at transforming how countries within the BRICS coalition—Brazil, Russia, India, China, and South Africa—conduct cross-border transactions.
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Launched in 2018 by the BRICS Business Council but officially unveiled at the just ended 16th Edition of Brics summit held in Kazan ,Russia,the BRICS PAY will not just be another payment platform; but rather a decentralized and independent messaging system designed to facilitate payments in local currencies.
Unlike traditional systems such as SWIFT or China’s Cross-Border Interbank Payment System, BRICS PAY aims to reduce the complexities and costs associated with international payments, fostering cooperation among its member states.
“BRICS PAY represents a significant shift in how we think about international finance,”Chinese President Xi Jinping a founding member of BRICS explains..“By enabling transactions in local currencies, we are empowering our economies and reducing reliance on Western-dominated financial systems.”
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The Technology Behind BRICS Pay
At the heart of BRICS PAY lies the Decentralized Cross-border Messaging System (DCMS) developed in collaboration with Saint-Petersburg State University. This innovative system operates without a central authority, allowing participants to manage their own nodes. This decentralization not only enhances security but also makes the platform resistant to external control.
One of the standout features of DCMS is its flexibility regarding transaction fees. While it does not impose mandatory charges, participants have the option to set their own fees, facilitating a more tailored and potentially cheaper payment experience. Furthermore, the system is designed to ensure reliable communication even if direct connections are temporarily unavailable, automatically building transaction routes to minimize disruption.
With a capacity to handle up to 20,000 messages per second, DCMS promises to streamline the payment process substantially. Its open-source nature, expected after the pilot phase, will further enhance transparency and innovation within the platform.
BRICS PAY is more than just a technological advancement; it symbolizes a collective vision for economic empowerment among emerging markets. By facilitating easier financial transactions, member nations can foster closer trade ties, reduce settlement imbalances, and enhance overall economic stability.
As BRICS countries continue to grow in prominence on the global stage, initiatives like BRICS PAY could play a pivotal role in reshaping the landscape of international finance. “This is about more than just technology; it’s about building trust and cooperation among nations that share common goals,” the spokesperson adds.
As the global economy evolves, the need for innovative payment solutions is paramount. BRICS PAY stands at the forefront of this change, offering a promising alternative for countries looking to enhance their economic interactions. By prioritizing local currencies and decentralization, BRICS PAY not only simplifies payments but also strengthens the ties that bind the BRICS nations, paving the way for a more cooperative and prosperous future.
BRICS PAY represents a significant step toward financial autonomy for member countries, allowing them to reduce reliance on Western financial systems and enhance their economic sovereignty.
BRICS PAY enhances trade, boosting financial independence and resilience.
Allowing to reduce reliance on Western financial it enhance international finance , economic interactions too.