BRICS Summit: A New Global Payment System in the Works

Russia aims to establish an alternative global payment platform immune to Western sanctions through BRICS, leveraging blockchain for secure digital currency exchanges. This move counters Western dominance in global finance, challenging existing structures like the IMF, and proposes new trade mechanisms, including a BRICS grain exchange.

Russia is advocating for BRICS nations to establish an alternative international payment system that would be resistant to Western sanctions. This proposal will be discussed at a summit hosted by Russia next week.

The BRICS group, which now includes Egypt, Ethiopia, Iran, and the UAE, alongside Brazil, Russia, India, China, and South Africa, is being positioned by President Vladimir Putin as a formidable counterbalance to Western influence in global politics and trade. Scheduled for October 22-24 in Kazan, the summit showcases Russia's efforts to challenge U.S. dollar dominance in the financial system.

Key to Russia's strategy is a new payment system using blockchain technology and digital tokens supported by national currencies, aiming to streamline and secure trade payments. However, the initiative faces hurdles, such as the need for consensus among its expanded BRICS membership.

(With inputs from agencies.)