BRICS PAY

BRICS Pay (stylised as BRICS PAY) is a decentralised and independent payment messaging system associated with the BRICS organisation. It aims to facilitate trade among member nations by enabling transactions in their own currencies, providing an alternative to existing payment systems like SWIFT. This initiative reflects the growing desire among BRICS nations to enhance economic cooperation and reduce reliance on traditional financial networks.

System

The BRICS Pay project is a collaborative initiative developed by the BRICS member states to facilitate payments in their respective local currencies. Launched in 2018 by the BRICS Business Council, the venture aims to enhance the efficiency of international transactions. The team managing BRICS PAY comprises financial and banking technology experts from the four founding nations of BRICS, along with South Africa. The primary objective of BRICS PAY is to make international payments safer, more transparent, and less costly and complicated, thereby promoting international cooperation among the rapidly growing BRICS nations.

On October 23, 2024, China announced its full support for BRICS PAY.

BRICS DCMS

BRICS PAY will incorporate a decentralised Cross-border Messaging System (DCMS), developed by researchers from the Center of Saint-Petersburg State University in Russia. The DCMS operates transparently, without a central owner or hub, allowing participants to manage their own nodes. This decentralised structure is designed to make the system resistant to external abuse, control, or interference.

The system does not impose mandatory transaction fees; however, participants have the option to charge each other if they choose. DCMS automatically establishes transaction routes between participants to ensure reliable communication, even in cases where direct transmission is unavailable, with the aim of minimizing settlement imbalances between counterparties.

Messages within the system will be encrypted and signed, employing multiple encryption mechanisms for enhanced security. Participants can set their own currency conversion rates and transaction limits. With recommended settings, DCMS claims to handle up to 20,000 messages per second while maintaining minimal hardware requirements. Additionally, DCMS is planned to be open source after successfully completing its piloting phase.

The member states of BRICS view BRICS Pay as a means to enhance trade among themselves, promote financial inclusion, and reduce their reliance on the US dollar. Russia has been the strongest advocate for BRICS Pay, seeking to bypass the SWIFT network and US dollar transactions following sanctions imposed after its attack on Ukraine. Iran, also under US sanctions, considers this initiative a top national priority. Brazilian President Lula da Silva has expressed support for the mechanism, emphasising that "the multipolar order we aim for is reflected in the international financial system," and he has proposed the idea of creating a BRICS currency.

The Kazan Declaration, issued in October 2024, acknowledged the advantages of cross-border payment instruments in minimizing "trade barriers and non-discriminatory access," while advocating for the use of local currencies in financial transactions between BRICS countries and their trading partners. However, the declaration did not commit to establishing a unified currency among the member states.

See also

• SWIFT
• Bilateral key exchange and the new Relationship Management Application (RMA)
• Cross-Border Interbank Payment System (CIPS)
• Dedollarisation
• Electronic money
• Indian Financial System Code (IFSC)
• Single Euro Payments Area (SEPA)
• Sibos conference
• TIPANET
• Value transfer system