The SWIFT System and the Dollar Have Lost Trust. What is Known About the New BRICS Payment Platform

 

The SWIFT payment system and the dollar have proven to be unreliable, stated the Chairwoman of the Federation Council, Valentina Matviyenko. According to her, when countries can use foreign currency reserves and the income from them, it undermines trust in the global economy and financial systems.

SWIFT is an international system through which banks from different countries make payments to each other. Russia was disconnected from it after the start of the special operation in Ukraine.

Additionally, Western countries imposed sanctions against the Central Bank, freezing Russia's international reserves, including gold and foreign currency reserves. All operations related to Russian assets have also been subject to restrictions.

Matviyenko noted that the West's handling of Russian reserves has led to an increase in the use of national currencies within BRICS. This, in turn, reduces the role of the dollar in the global economy.

In this regard, Russia and its partners intend to create their own independent payment system, "BRICS Bridge". The final decision on this matter is planned to be made at the BRICS summit in October.

The creation of a separate payment system was first announced in early June by the Minister of Finance, Anton Siluanov. He noted that the platform will allow payments to be made "almost instantly" at minimal costs.

It is assumed that blockchain technology (a chain of blocks containing information about users' transactions) will be used for transactions on BRICS Bridge. The payment unit will be tokens (digital assets). They will be tied to the national currency, which will allow their value to be stable and predictable.