BRICS Explores SWIFT-Like System & Digital Currencies to Challenge Dollar Dominance

BRICS leaders, focusing on diminishing US dollar reliance, plan to explore a SWIFT-like payment system and the use of national digital currencies. While a shared currency isn't imminent, cooperation on financial tools, led by Russia, seeks regional growth. India, however, opposes a de-dollarisation agenda.

Russian President Vladimir Putin has proposed to BRICS leaders a plan to explore a cross-border payments system reminiscent of SWIFT but immune to Western sanctions. This initiative aims to reduce the reliance on the US dollar by leveraging national digital currencies to finance projects, despite the absence of plans for a unified BRICS currency.

Putin suggested the cautious introduction of new reserve currency mechanisms, considering substantial economic disparities within the 10-member bloc. As Russia faces sweeping sanctions post-Ukraine conflict, it seeks to circumvent the global financial system via a BRICS-centric payment network, enhancing cooperation with countries like India.

Prime Minister Narendra Modi will join the upcoming BRICS summit in Kazan, amidst an expanded membership including Egypt and Saudi Arabia, representing a quarter of the world's economy. The grouping is deliberating the use of digital currencies, with India's stance remaining neutral to de-dollarisation despite broader BRICS aspirations for financial independence.

(With inputs from agencies.)