Russia's BRICS Alliance: A New Crypto Payment System Sans U.S. Dollar

• Russia Developing New Payment System, Excluding U.S. Dollar
• Implications for the U.S. Dollar
• BRICS: New Payment System Without U.S. Dollar Mechanism In Progress
• New Economic Connections
• The Future of the U.S. Dollar with BRICS

Russia Developing New Payment System, Excluding U.S. Dollar

In a recent announcement, Russia confirmed its intent to establish a new payment mechanism for settling cross-border transactions with BRICS nations and other developing countries, thereby avoiding the usage of the U.S. dollar. This move is a result of the sanctions imposed by the U.S. following Russia's invasion of Ukraine.

Implications for the U.S. Dollar

If successful, this move could significantly impact the U.S. dollar. As BRICS countries and other nations choose to conduct transactions in local currencies, the U.S. dollar stands to lose considerable influence. It remains to be seen how this transition might affect sectors within the U.S.

BRICS: New Payment System Without U.S. Dollar Mechanism In Progress

Kremlin spokesperson, Dmitry Peskov, has confirmed that the nation is making strides towards building a new payment system that does not rely on the U.S dollar. He went on to describe the existing world order, heavily influenced by the U.S. dollar, as unreliable, false, and dangerous.

New Economic Connections

Peskov stated that Russia is conceptualizing a new system of economic connections as a response to the perceived unreliability and danger of the existing system. He emphasized that Russia is exploring alternatives for development. However, specifics regarding the new payment mechanism and its scalability have not been detailed. Furthermore, no clear insights have been given into the payment system endorsed by BRICS to contest the U.S. dollar. Despite this, it is clear that Russia has no intention of unveiling further details on the upcoming payment network yet.

The Future of the U.S. Dollar with BRICS

This proposed payment system is indicative of the broader goal of BRICS to challenge the supremacy of the U.S. Dollar. Spearheaded by China and Russia, the campaign for de-dollarization encourages other developing nations to trade in local currencies. An increasing number of countries are hinting at a willingness to stray from the U.S. dollar and settle trades in local currencies.

Edited by Jonathan Stoker