BRICS payment system challenges dollar’s dominance

The proposed BRICS international payment system could potentially erode the U.S. dollar's dominance in global trade by offering an alternative to traditional systems like SWIFT. 

Experts highlight several advantages of this system, including the ability to bypass Western sanctions, reduce transaction costs, and enhance confidentiality in financial operations. 

Alexander Ignatov emphasized that adopting a SWIFT alternative would help countries avoid dependence on Western infrastructure and diversify financial risks. 

"The main advantage of the new platforms will be that they are not American/European and cannot be used to implement sanctions or depend on changes in U.S. or Eurozone policies," stated Anton Tabakh, noting that such a system would allow trade without adhering to Western unilateral sanctions.

Tabakh also pointed out that recent events, including tariff turmoil, have undermined the authority of the U.S. as a financial market pillar, suggesting that alternative financial infrastructure could further erode this role.

Russian Foreign Minister Sergey Lavrov recently mentioned that the BRICS payment system proposal might be available to non-member countries, indicating broader potential adoption.

This initiative reflects efforts by BRICS nations to create independent financial infrastructure, potentially reshaping international trade dynamics and challenging the dollar's supremacy. 

While the system is still under discussion, its adoption could provide countries with tools to conduct trade more independently of Western financial systems.