Russian Official Declares BRICS Payment System Will Be a Real Replacement for USD

A senior Russian official has declared that the BRICS payment system construction plan is "not a hypothesis", signaling a shift towards reducing dependence on the dollar through alternative financial mechanisms. A new era? Russia declares the feasibility of the BRICS payment network Russian Deputy Foreign Minister Sergey Ryabkov affirmed that the plans to establish the BRICS payment system are tangible and progressing, describing them as "not hypothetical". In an interview with the Tass Analysis Center on Tuesday, Ryabkov reflected on Russia's role during its BRICS chairmanship, emphasizing that this initiative is both real and actionable. When asked about the feasibility of such a payment system among BRICS countries, he declared: Not only does it exist. It is not a hypothesis. Discussion of Russia's potential cooperation with countries such as Brazil and Iran, Ryabkov affirmed that Russia is ready to move forward and pointed out that other BRICS countries may follow suit. "Of course. Moreover, other countries will also participate. This plan is currently being discussed and implementation is not a one-size-fits-all model. It is a model that creates an additional circuit to work in conditions when the main and well-known dollar channel is crashing for reasons beyond BRICS' control," he explained. He further explained that the plan aims to create a parallel mechanism instead of completely replacing the dollar. The BRICS group has expanded, now including Brazil, Russia, India, China, South Africa, and six new members - Saudi Arabia, Iran, UAE, Egypt, Ethiopia, and Argentina - have stepped up efforts to reduce reliance on the US dollar for international trade and investment. This move is in line with a broader trend of 'de-dollarization', driven by geopolitical tensions and a desire to shield economies from the volatility of the dollar. Recent developments have included local currency trade agreements, the establishment of alternative payment systems, and discussions about creating a BRICS currency to facilitate intra-bloc transactions. However, these efforts have faced obstacles such as differing economic structures, divergent policy priorities, and the need for a robust mechanism to ensure stability and liquidity of the currency across the bloc. Ryabkov also emphasized the necessary additional components to support the system, including offset payment mechanisms, transaction insurance systems, and cargo transportation guarantees. "We are also studying them - transaction insurance systems, including insurance for transportation of goods and cargo, which will not depend on harmful external impacts," he noted. The deputy minister concluded that these measures together signal progress towards establishing a feasible alternative solution for existing financial structures. He expressed his opinion: In general, this is the minimum level at which 'BRICS' can say that everything has progressed and a real alternative solution has emerged. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)