20 Nations Shift to Russian Payment System, Abandoning US Dollar

Jonathan Stoker Feb 04, 2024, 19:50pm 248 views

20 Nations Shift to Russian Payment System, Abandoning US Dollar

20 Nations Adopt Russian Payment System in De-Dollarization Efforts

In synchrony with the BRICS alliance's overall de-dollarization initiative, 20 nations have integrated the Russian Payment system as an alternative to the US dollar. Russia's alternative to the SWIFT now welcomes more than 159 foreign participants.

BRICS Alliance Seeking Alternatives to Western Payment System

The BRICS alliance has been actively searching for a way to challenge the status quo of the Western payment system. Russia's System for Transmitting Financial Messages (SPFS) could potentially be that alternative. Elvira Nabiullina, Russia Central Bank Governor, recently revealed this during a BRICS alliance discussion.

Increasing De-Dollarization Plans in 2023

Throughout 2023, the BRICS economic alliance has been amplifying its de-dollarization strategies. Russia, along with the recently included nation Iran, have experienced the repercussions of Western sanctions. Consequently, the other countries in the alliance fear similar actions against them, and hence, are looking to challenge the global dominance of the US dollar.

An Alternative to the Western SWIFT

In the face of these challenges, the BRICS alliance has been working towards establishing an alternative to the Western SWIFT. Currently, as the BRICS alliance continues to rise in prominence, 20 countries have joined the Russian payment system, distancing themselves from the US dollar. Importantly, Russia's Central Bank governor has actively engaged with the other BRICS nations concerning this development.

Russia's System for Transmitting Financial Messages

"Russia has a System for Transmitting Financial Messages (SPFS), which is an alternative to SWIFT. Similar infrastructures exist in some other countries. We are discussing the potential for these platforms to interact, but this also heavily depends on our partners' interest and technical readiness," Nabiullina noted. Following her statement, she announced the nations that have already engaged with the system, along with its 159 foreign participants.

SWIFT And Russia's Alternative

SWIFT is a global interbank system that facilitates information transmission and payments across 11,000 organizations in every country worldwide. Russia aims to offer a similar function with its alternative, but without the excessive reliance on the US dollar. This move, in combination with the BRICS Pay initiative launched in the previous year, is expected to further the alliance's de-dollarization plans in the following year.

Edited by Jonathan Stoker

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