BRICS Pay is a digital payment system being developed by the BRICS bloc (Brazil, Russia, India, China, and South Africa, along with the new members) that seeks to create an alternative to the dominance of the US dollar and the SWIFT system in international transactions. The initiative has been compared to Brazil's Pix, but on a global scale.
How It Works and What Are the Objectives?
The main objective of BRICS Pay is to allow member countries to conduct commercial and financial transactions directly in their local currencies, eliminating the need for conversion to the dollar. This brings several advantages, such as cost reduction (exchange rates and intermediation fees) and faster operations.
Furthermore, the project aims for greater financial autonomy for the bloc, protecting its members from potential financial sanctions and restrictions imposed by Western powers that control traditional payment systems. Although some rumors have circulated about a single BRICS currency, the BRICS Pay project is not about that; it is a settlement system that works with the existing national currencies.
Impacts and Challenges
The implementation of BRICS Pay could have a significant impact on international trade, especially for the countries in the bloc. For Brazil, for example, the system could benefit sectors such as agribusiness and mining, facilitating commodity exports to China and India with reduced costs.
However, the initiative also faces considerable challenges. The lack of monetary cohesion among the members, who have economies with distinct structures and policies, is an obstacle. Additionally, there is the risk of geopolitical retaliation from the United States, which sees the reduction of the dollar's role as a threat to its economic supremacy.
Launch Timeline
Despite the great interest and recent advances, such as those discussed at the BRICS Summit in Rio de Janeiro in July 2025, BRICS Pay is still in the development phase. The expectation is that a pilot project may emerge before the end of 2026, with incremental testing being carried out along the way.