159 countries responded to join! Russia and BRICS suddenly announced a "new payment system"

The Governor of the Central Bank of Russia, Elvira Nabiullina, stated that Russia is discussing the integration of its payment systems with the BRICS alliance, revealing that foreign participants from 159 countries have already connected to Russia's new Financial Messaging System (SPFS).

According to Watcher.Guru, in recent years, the BRICS alliance has been committed to strengthening "De-Dollarization" efforts. In light of Western sanctions against Russia, this move is clearly aimed at promoting local currencies and alternative settlement methods. Despite skepticism, it is undeniable that these efforts have been quite popular so far. The BRICS alliance refers to the five major emerging economies, including Brazil, Russia, India, China, and South Africa. The name comes from the acronym of these countries' names in English: BRICS.

Nabiullina mentioned that 159 countries are ready to adopt the system once the BRICS payment system goes live. In fact, these foreign participants are exploring the expansion of Russia's SPFS payment system platform.

She explained that the SPFS system "is an alternative to the international payment system SWIFT."

SWIFT, short for the Society for Worldwide Interbank Financial Telecommunication, is a financial communication infrastructure aimed at connecting the global banking industry. In simple terms, SWIFT is an international bank code or identification code. These codes are used in interbank transfers, especially in international wire transfers or SEPA transactions. Banks also use these codes to exchange information.

Nabiullina further added, "Other countries have similar infrastructures, and we are discussing interactions between these platforms. However, the interest and technical readiness of partners are crucial."

Payment systems are becoming increasingly important for the alliance.

Viktoria Panova, Chairwoman of the BRICS Russia Presidency, stated that this mechanism is a priority for the upcoming BRICS 2024 summit. She said, "We are actively working to establish a financial payment mechanism that facilitates cooperation among BRICS countries and safeguards their sovereign trade and economic exchanges."

She added, "This issue is of primary importance because every BRICS member considers it essential."

Currently, discussions are underway on how to interconnect these platforms, but this depends on the interest and technical readiness of the partners, which will determine the final implementation.

It is understood that the system may officially launch in October this year, allowing unilateral settlements without the use of the US dollar. 159 countries are already prepared to connect to the BRICS payment system once it goes live.

Nabiullina also mentioned that the current US sanctions have intensified Russia's need to develop alternative payment methods, while also promoting negotiations on digital currency settlements between Russia and "friendly countries." The adoption of such digital currencies would enable transactions that bypass traditional financial channels, thereby mitigating the risks posed by sanctions.

As sanctions intensify, Russia is seeking to break the sanctions dilemma through cooperation with BRICS countries and advancing the use of digital currencies. The progress of this process could not only change the way trade settlements are conducted between China and Russia but also have a profound impact on the future direction of the global financial system.