Brazil fears the dollar: Brics states rely on digital payment solutions for independence from western financial systems

<p> <strong> Brazil fears the dollar: Brics states rely on digital payment solutions for independence from western financial systems </strong> </p>

Brazil and the Brics countries: one step away from the dollar

Brazil, which is currently the chair of the Brics states, plays a crucial role in the promotion of digital payment solutions. The aim is to reduce the dependence on western financial systems such as Swift and to develop a more independent approach to international financial transactions.

Digital payment solutions to strengthen financial autonomy

inspired by the Brazilian Pix system, which enables direct transactions, Brazil plans a new payment system to minimize the dependency on the US dollar. This initiative aims to accelerate the financial transactions between the BRICS countries and to question historically significant dominance, such as those of the US dollar. BRICS, which includes Brazil, Russia, India, China and South Africa, has positioned itself as an important player in global trade under its expanded membership that also includes countries such as Iran and Saudi Arabia.

Independent clearing and custody systems

The Brazilian government intends to establish an independent clearing and custody system for the member countries. This strategy has the potential to significantly change the dynamics of world trade and to strengthen the financial autonomy of the BRICS countries. The models discussed include a system that enables quick, direct transactions without excessive bureaucratic obstacles, but remains bound to national fiat currencies.

support of Russia and the vision for Brics Pay

Russia has strongly supported the initiative for creating digital processing. The Russian Foreign Minister Sergei Lavrov has emphasized that Brazil plays a leading role in discussions about cross -border digital payments. In addition, the creation of a BRICS dismissal insurance company and a cross-border payment infrastructure is considered.

A central element of the initiative is the Brics Pay, which has been operated since 2018, a decentralized financial news system that enables member states to carry out transactions in their local currencies, and the traditional financial intermediaries. This strengthens transaction security and lowers the costs.

challenges and political tensions

Although the BRICS countries make progress towards digital payment systems, there are also hurdles to overcome. Not all actors are ready to give up the dependency on the dollar. Former US President Donald Trump threatened the BRICS states with high import tariffs if such a step should be taken. This illustrates the political and economic tensions that a transition to a less dollar -centered global economy could bring.

FAZIT

Brazil and the Brics countries are on the threshold of a new age of financial transactions, which could possibly redefine the global economic order. By implementing innovative digital payment systems, you strive to promote financial independence and to reduce the dependency on the US dollar. The upcoming developments in this area will be crucial for the future dynamics of international trade.