🌍 BRICS Building New Global Payment Rails – Quiet Shift in Global Finance ⚠️
BRICS is not launching a new currency yet. Instead, they are doing something more powerful: building their own payment system outside SWIFT. This could slowly change how global trade works.
💳 What BRICS Is Planning
• A payment network linking national digital currencies (CBDCs) like:
– Digital Rupee 🇮🇳
– Digital Yuan 🇨🇳
– Digital Ruble 🇷🇺
• Countries keep full control of their own money.
• The system lets them trade directly without using the US dollar or SWIFT.
⚙️ How It Works (Simple Explanation)
1️⃣ Settlement Cycles – Instead of paying every trade instantly, countries net out totals and settle only the difference. This reduces huge cash needs.
2️⃣ FX Swap Lines – Central banks can temporarily exchange currencies to cover short-term payment needs. This adds liquidity and stability.
🇮🇳 India’s Key Role
India is pushing this system based on its UPI success.
New Delhi rejected a single BRICS currency but supports digital payment infrastructure that protects sovereignty.
💣 Why This Matters
• Dollar still dominates global finance (≈59% reserves, 58% global payments).
• But global debt is massive and mostly dollar-based.
• Sanctions on Russia and others showed any country can be cut off from SWIFT.
• Central banks are buying gold at record levels → trust in dollar is slowly weakening.
🧠 Big Picture Context
This is not de-dollarization overnight.
This is building a backup system in case the dollar system becomes risky or political.
📉 Risks & Challenges
• Legal and technical integration is complex.
• Different policies, inflation levels, and controls make coordination hard.
• Dollar still has huge network advantage.
🔥 Strong Takeaway
Currencies make headlines. Infrastructure changes the world.
BRICS is quietly laying the tracks for a parallel financial system—and markets should pay attention.