BRIC's De-dollarisation Efforts Take a Front Seat

In recent months, the BRICS bloc has been working extensively to push for an alternate financial system in an effort to dethrone the monopoly of the dollar.

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.

There are even many media outlets that report there are already 159 countries who are ready to adopt the new BRICS payment system when it goes on.

Misinformation about the BRICS Payment System

Rumours surrounding this new alternative payment system have been ongoing throughout 2024, with some speculating that the new system could be powered by blockchain technology. But it seems that misinformation has clouded the details of this initiative.

Among the many other rumours are claims that 159 countries have already joined the system ahead of its official launch. This statement was a misquote from Elvira Navuillina, the Governor of the Bank of Russia who was actually referring to the number of foreign participants in Russia's Financial Messaging System (SPFS).

SPFS is an alternative to SWIFT, not a payment method offered to BRICS members.

RT, the Russian state-owned news network, was one of the major outlets that promulgated this false information. Since then, RT has restricted the report and apologized for the erroneous report.

RT wrote on its Weibo account:

"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."

SPFTS expanding its international footprints

While SPFTS may not have secured 159 countries to use its system, it has definitely hit a remarkable milestone by successfully integrating over 160 foreign participants from 20 countries.

Notably, the participants include two Cuban banks, which greatly highlights the system's growing international footprint. These countries, primary allies of Russia, include Armenia, Kazakhstan, and Belarus.

De-dollarisation efforts continues

As the BRICS bloc advances its de-dollarization efforts, speculation is mounting about the potential role of cryptocurrencies in this shift. Russia has already legalized crypto mining and is expected to launch two national crypto exchanges aimed at facilitating international transactions.

Meanwhile, India is progressing toward the establishment of a comprehensive regulatory framework for cryptocurrencies, signaling the growing importance of digital assets in the global economy.