BRICS Challenges SWIFT with New Cross-Border Payment System

BRICS is advancing a cross-border payment system designed to reduce reliance on Western financial infrastructure, particularly the SWIFT network. The system facilitates transactions in local currencies, bypassing the US dollar, and is gaining traction among emerging economies seeking financial sovereignty. This initiative aligns with the bloc's broader de-dollarization push.

The groundwork was laid at the 2014 Fortaleza Summit, which established the New Development Bank and the Contingent Reserve Arrangement. Western sanctions accelerated efforts, culminating in the formation of the BRICS Payments Task Force. At the 2024 Kazan Summit, leaders reaffirmed their commitment to financial independence.

Central Bank of Russia governor Elvira Nabiullina highlighted the rapid adoption of the system, noting that settlements in national currencies among BRICS countries surged from 26% to 85% in just two years. Russian President Vladimir Putin emphasized the strategic motivation behind the move, underscoring the bloc's ambition to reshape global financial dynamics.