The recent expansion of the BRICS alliance poses a significant threat to the traditional SWIFT payment system and the dominance of the US dollar in global transactions. The BRICS group, which includes Brazil, Russia, India, China, and South Africa, is developing a new payment system known as BRICS Pay that could rival SWIFT. This new system will allow the countries to bypass the US dollar in international transactions, which could potentially weaken the dollar’s stronghold as the world’s primary reserve currency.
The BRICS Pay system is primarily aimed at reducing the alliance’s dependency on the Western dominated financial system and fostering greater economic integration among the BRICS nations. If successful, this move could reshape the global economic landscape and tilt the balance of power towards emerging economies. It’s essential to keep an eye on these developments, as they may have far-reaching implications for the future of the global financial system and the position of the US dollar.
