Amid the economic alliance’s de-dollarization efforts, the BRICS bloc has turned to blockchain technology for a brand new payment system. Indeed, its efforts have sought to build a competing currency built on digital assets. Yet, that could face some opposition, as the US may be preparing to challenge the BRICS currency plans in an attempt to save the dollar long-term.
A Reuters report identified that the SWIFT global payment system is developing a Central Bank Digital Currency platform at some point in the next 1-2 years. Yet, the SWIFT platform has faced BRICS opposition because of its connections to the West, and the United States. Ultimately, this could see the BRICS recently announced payment system face some competition on an international scale.
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SWIFT Digital Currency System to Challenge BRICS Payment System?
Over the past year, the BRICS economic alliance has been committed to de-dollarization. On the heels of Russian sanctions, the alliance feared similar action, threatening its ability to compete economically. Although they firmly embraced local currency promotion, they took it a step further.
Throughout this year, the bloc has introduced digital currency plans. The alliance announced the creation of a BRICS payment system that would be blockchain-based. Moreover, that led many to assume that a native currency in that same vein would be on the way. Subseuqnlety, the West is seemingly seeking to compete. Specifically, the US may be set to challenge the BRICS currency in plans to save the US dollar.
Also Read: BRICS: Goldman Sachs Says Central Banks To Drive Gold Price
The Western-run SWIFT payment system saw its greatest competition set to arrive in the BRICS system. Subseuqnlety, their foray into digital currencies could present a key point of contention with the alliance seeking to combat the global relevance of the US dollar.
SWIFT’s intervention reads as an attempt to compete in a market that the BRICS bloc has taken control of thus far. Moreover, it occurs as Central Banks throughout the globe have sought diversification through gold acquisition. Specifically, to protect against the potential collapse of the US dollar.
The greenback is still the global reserve, but a mounting US Debt has ensured that won’t remain a fact forever. Therefore, this implementation by SWIFT presents a chance to increase competition with BRICS heading into the evolution of finance. The question becomes, how much does the BRICS head start mean for its eventual arrrival?
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