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BRICS Pay Adoption Outside Russia Appears Unlikely, Experts Weigh In

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Giuseppe Ciccomascolo
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Key Takeaways
  • BRICS Pay is set to be launched in 2025, and Russia may be the first country to use it.
  • The system faces significant challenges, including geopolitical tensions.
  • Some see the push to sideline the dollar as politically driven rather than a practical response to consumer demand.

In October 2024, the BRICS Forum introduced BRICS Pay, a new payment system designed to enable international transactions using national currencies, reducing reliance on the U.S. dollar and euro.

With a focus on facilitating direct payments between BRICS+ countries and promoting digital currencies, the initiative aims to bypass international payment networks and lower transaction fees.

However, experts highlight several significant challenges, from sanctions to geopolitical tensions, that could limit BRICS Pay’s success competing with established global payment systems.

Potential for Further Sanctions?

In October 2024, the BRICS Forum in Moscow introduced BRICS Pay. The new payment system main goal is to facilitate direct payments between BRICS+ countries.

For payment technologies expert Manarbek Abenov, BRICS Pay faces significant challenges,  particularly due to secondary sanctions that have previously disrupted Russia’s Mir payment system.

“Since the Ukraine war in 2022, U.S. sanctions and international payment restrictions have limited the functionality of Mir cards abroad. Additionally, trade imbalances and geopolitical tensions have hindered financial cooperation between BRICS Nations. Countries, like India and China, avoided certain transactions with Russia,” he said.

For Abenov, given these obstacles and the potential for further sanctions, the success of BRICS Pay as a global alternative payment system appears unlikely. Its adoption may be constrained to limited regions and political alliances.

What’s more, BRICS Pay faces a noteworthy challenge,  with its mobile application targeted for the App Store and Google Play. The app is at risk of removal, similar to those from sanctioned Russian banks, which could undermine the systems’ stability and acceptance.

Hurdles in Bid To Rival U.S. Dollar

Speaking with CCN, Jón Helgi Egilsson, Chairman of Monerium and former chairman of the supervisory board of the Central Bank of Iceland, said that “while this initiative highlights a significant geopolitical ambition, it also underscores the complexity of creating a truly viable alternative to the dollar.”

“The technological challenge of moving money from one place to another has been largely solved. Innovations like blockchain, digital currencies and real-time settlement systems have made transactions faster and cheaper than ever before,” Egilsson said.

However, the question is not how money moves but what form of money people trust and choose for these movements.

“Legislation and governance play a decisive role here. The usability and acceptance of any currency have roots in jurisdictional laws and frameworks grounded in the rule of law,” he added.

Any international system must align with globally recognized standards for governance and legal frameworks to succeed. For Egilsson, this is where initiatives like BRICS Pay are likely to face their most significant challenges:

“The strength of a system like the U.S. dollar lies in its universal recognition and trust. Not merely in the ease with which it can be transferred. The idea that one can receive or transact in dollars as long as an internet connection is no longer a technological marvel. It is also the outcome of decades of global trust in the institutions and systems supporting the currency.”

Just Political Ambitions?

Egilsson focuses on the political side of the matter to explain why the new payment system may face hurdles after its launch. “While BRICS economies represent roughly 25% of global GDP, the absence of G7 Nations and major global currencies creates a critical gap,” he said, adding:

“The system’s push to sideline the U.S. dollar—which still accounts for more than 80% of international transactions—appears driven more by political ambitions than practical financial benefits or consumer demand.”

For the Monerium chair, the goal should not be to replace one dominant system with another. But to create a complementary, cooperative global structure that enhances inclusivity and trust.

“Without clear advantages over existing payment rails and a trusted global currency—whether in trust, cost, speed or efficiency—institutions have little reason to integrate yet another payment system into their operations,” Egilsson opined.

“In 2023, intra-BRICS trade accounted for approximately 8% of global trade volume. This platform sounds to me like one with more political than practical ambitions,” he elaborated.

A Step Toward Financial Autonomy

Daniel Ahmed, COO and co-founder of Fasset and Own, said, “BRICS Pay could be an ambitious step toward financial autonomy for emerging markets, but its success depends on overcoming significant geopolitical, technical and adoption challenges.”

“A blockchain-based system could help address some of these issues, for instance, simplifying interoperability between the payment systems of different member states,” Ahmed added.

Blockchain transactions already provide a proven way to transfer value efficiently, so, according to Ahmed, off-the-shelf infrastructure is already available:

“We envision a future where decentralized solutions strengthen initiatives like this, creating a more dynamic, resilient, and inclusive financial system. Emerging markets deserve not just alternatives to traditional systems but transformative platforms that truly empower their populations.”

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Giuseppe Ciccomascolo

Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors. Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
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