BRICS introduces payment system called BRICS Pay
BRICS Pay, an innovative payment system developed by the BRICS countries.
This system is designed to reduce reliance on traditional financial networks like SWIFT and allow these nations to manage transactions more independently.
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So, what exactly is BRICS Pay?
BRICS Pay is a decentralized payment messaging mechanism system that's built to facilitate smooth and secure cross-border payments. Unlike traditional systems that often require multiple conversions and can be stopped down by fees and delays, BRICS Pay aims to enable transactions directly in local currencies. This reduces the need for converting to a major currency like the US dollar, making the process faster and more cost-effective.
BRICS Pay independent payment messaging mechanism system is under development by the BRICS member states. It aims to facilitate cross-border payments and reduce reliance on traditional systems like SWIFT.
BRICS Pay operates without a central owner or hub. Instead, participants manage their own nodes, making the system resistant to external control or interference.
The system is designed to enable payments in local currencies, reducing the need for conversions to major currencies like the US dollar. This helps to promote financial independence and sovereignty among BRICS nations.
BRICS Pay aims to achieve high-speed transactions, with the capability of processing up to 20,000 messages per second. This ensures efficient and reliable communication between participant.
Messages within the system are encrypted and signed, with multiple encryption mechanisms available to ensure security. This helps to protect sensitive financial information and maintain the integrity of transactions.
The system is planned to be open source after passing the testing phase, allowing for transparency and collaboration among developers and participants.
BRICS Pay does not feature mandatory transaction fees, but participants can optionally charge one another. This flexibility helps to keep costs low and makes the system accessible to a wider range of users.
The system is designed to be compatible with existing national and international payment systems, enhancing cross-border payment capabilities.
The BRICS Pay Consortium, consisting of financial, banking, and technology experts from BRICS member states, is responsible for developing and testing the system. The consortium operates under the principles of a decentralized autonomous organization (DAO).
BRICS Pay represents a significant step towards creating a more equitable and independent global financial system. By providing an alternative to traditional payment systems, it aims to promote financial sovereignty and reduce the influence of major currencies and institutions.
Influence of BRICS Pay!
The influence of BRICS Pay on the global economy may be significant. By enabling member nations to trade amongst themselves without reliance on the dollar, this platform could facilitate a shift in trade and financial movements. Additionally, it might motivate other countries to explore alternatives to the US dollar, thereby supporting the de-dollarization trend.
This development is particularly relevant given the substantial economic shifts occurring in the United States. Protectionist measures and sanctions from Washington have led certain nations to seek methods for shielding their economies from dollar volatility. By providing a robust alternative through BRICS Pay, the bloc could not only enhance its internal trade relationships but also attract other countries looking to diversify their trading partners.
