The BRICS Initiative to Create an Independent Digital Payment Network

LiquidityWizard · 2026-02-14T23:00:53+00:00

India, as BRICS chair, proposes a connectivity system for digital monetary settlements that allows its members to operate without relying on the dollar. Using blockchain, it aims to strengthen financial autonomy and reduce costs. This system could transform international transactions and weaken the dominance of the dollar.

LiquidityWizard

2026-02-14 23:00:53

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India, in its role as the rotating chair of BRICS, has recently presented an ambitious proposal: to develop a digital currency settlement connectivity system that allows the five member countries to operate without relying on payment infrastructures controlled by Western powers. This initiative represents a significant shift in how emerging economies plan to handle their international transactions.

What Does the BRICS System Really Aim For?

The proposal is not about creating a new supranational currency, as many speculate. According to BlockBeats, the goal is more specific and pragmatic: to build a cross-border settlement platform based on blockchain technology that directly links national payment systems. The main purpose is to bypass the U.S. dollar intermediary in transactions between BRICS nations, reducing costs and processing times while strengthening each country’s financial autonomy.

The Technological Architecture: Consortium Blockchain with Central Banks

The technical core of this initiative relies on a consortium blockchain architecture, fundamentally different from public decentralized networks. In this model, the central banks of India, Brazil, Russia, China, and South Africa would act as primary validator nodes. This structure ensures that each nation maintains sovereign control over its data and processes, while a distributed ledger records all transactions with transparent verifiability.

Advantages of Moving Away from the U.S. Dollar

The true significance of BRICS lies in the fact that this digital payment network would strengthen the monetary independence of its members. By settling transactions directly in local currencies or alternative assets, exposure to dollar fluctuations and potential sanctions is reduced. For economies like Russia and China, facing restrictions from the Western financial system, this platform offers a credible alternative. BRICS’ proposal also sets a precedent: other regional coalitions are likely to develop similar systems, gradually fragmenting the dollar’s hegemony in international payments.

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