The BRICS nations are now looking to create a new financial system to compete with the SWIFT system, which has some similarities.
The BRICS alliance attempts to supplant the Western SWIFT system with its financial mechanism, thereby bypassing it. BRICS will reshape the global commerce landscape by establishing a new financial messaging system comparable to SWIFT.
SWIFT is currently the primary method of settling cross-border transactions, and the nine-member alliance gains leverage by severing its links to the system. BRICS can establish a new payment system that does not use US currency for transactions.
Using local currencies in trade settlements permanently eliminates reliance on the US dollar. The global dominance of the US dollar can be disrupted by the BRICS payment system, which is analogous to SWIFT.
The SWIFT Payment System is Under Pressure from BRICS
Russia has confirmed that the BRICS alliance intends to establish a new payment system comparable to SWIFT. “The primary objective of the financial agenda of the BRICS is to establish a new economic reality that addresses both significant challenges.” Deputy Chairman of the Russian State Duma Alexander Babakov stated, “We are developing a financial messaging system for the BRICS countries similar to SWIFT. This system will be based on state-owned banks capable of clearing settlements of counterparties from the BRICS countries and the related role of the same bank.”
The ambassador stated that to advance the de-dollarization agenda, BRICS must establish an alternative to SWIFT. “It is imperative to establish a novel system of financial institutions.” The new system must be technically compatible with the participating countries’ current financial infrastructures, including integration with national payment systems, banks, and other financial institutions. He concluded that the system must simultaneously guarantee high security and data protection to prevent unauthorized access to financial information and cyber-attacks.