April 29, 2025
By Anjali Kochhar
China has made a daring step toward financial independence by formally announcing plans to advance its own international payment system, which is intended to provide a substitute for the U.S. currency and Western financial networks. A larger goal of the BRICS countries Brazil, Russia, India, China, and South Africa is to increase financial sovereignty and change the global economic order.
At the heart of this initiative is the development of BRICS Pay, a blockchain-based payment platform that will facilitate direct transactions among member countries. Unlike traditional systems such as SWIFT, which are often influenced by Western policies, BRICS Pay aims to create a decentralised and more secure financial network. By utilising smart contracts and distributed ledgers, the system is expected to simplify cross-border payments, reduce transaction costs, and minimise reliance on financial intermediaries.
This move comes amid growing concerns about the politicisation of existing financial systems. Russian Finance Minister Anton Siluanov recently emphasised the urgent need for a new payment infrastructure that can operate independently of Western influence, particularly given the increasing use of financial sanctions. The BRICS bloc sees this as a critical step in shielding member nations from external financial pressures.
Chinese leadership has been particularly vocal about reforming the global financial architecture. President Xi Jinping has called for a system that better reflects today’s shifting economic realities, advocating the use of central bank digital currencies (CBDCs) and blockchain technologies to build a more balanced and multipolar financial system.
Discussions around creating a unified BRICS payment system have been underway since 2019, including proposals for a shared cryptocurrency that would allow settlements directly in national currencies. By promoting such initiatives, BRICS countries aim to protect investments within the bloc and enhance economic cooperation.
Beyond independence, the system is expected to foster greater financial inclusion by offering cheaper, faster, and more accessible payment services to governments, businesses, and individuals across BRICS nations. This also positions the bloc to play a leading role in the next phase of global digital finance evolution.
With the recent expansion of BRICS to include Saudi Arabia, Egypt, the UAE, Iran, and Ethiopia, the launch of BRICS Pay marks a significant milestone. It signals a growing effort by emerging economies to reduce their dependence on Western-dominated institutions and establish a more diversified and resilient global financial ecosystem.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
