Vikrant Shekhawat : Oct 23, 2024, 09:15 AM
BRICS Summit: Many important discussions are taking place this time about the future of the global financial system in the 2024 BRICS summit being held in Kazan city of Russia. Mainly this discussion is focused on the options to get free from the dominance of the US dollar. Many member countries including Russia want to reduce dependence on the dollar and move towards an alternative global financial system. In this context, there is a lot of discussion about a new multilateral digital payment system, BRICS Bridge, which is being developed to make trade and economic transactions between BRICS countries smooth and independent.BRICS Bridge: A New Financial DirectionThe objective of the BRICS Bridge is to promote trade and financial cooperation among BRICS countries free from external political interference and sanctions. This system will give member countries the opportunity to transact through their national currencies and digital currencies, thereby reducing the influence of the dollar globally.10 key points of BRICS BridgeIndependent digital platformThe BRICS Bridge will serve as an independent and autonomous payment system, giving member countries the opportunity to avoid external political interference and financial sanctions. This will pave the way for economic independence for BRICS countries.Transactions in national currenciesThrough this system, trade and economic activities between BRICS countries will be carried out on the basis of their national currencies and digital currencies, reducing dependence on the dollar.Use of digital currencyUnder the BRICS Bridge, member countries will be able to use their own digital currencies. For example, Russia's digital ruble or China's digital yuan, which will ensure fast and secure transactions.Improvement of international paymentsThis system will make cross-border payments faster and more affordable, saving time and money in business processes.Avoidance of political sanctionsOne of the main objectives of the BRICS Bridge is to ensure independent financial transactions between member countries by avoiding external political pressure and sanctions. This system can play an important role, especially in the context of economic sanctions imposed on Russia.Alternative to SWIFTThe BRICS Bridge can be a possible alternative to international financial networks controlled by Western countries like SWIFT, through which member countries will become part of a new financial system.Financial integrationThis platform will strengthen financial integration among BRICS countries, thereby deepening their mutual economic partnership.Economic strength of BRICS countriesThe development of BRICS Bridge is a symbol of the fact that BRICS member countries are moving towards strengthening their economic independence and strength. This is likely to change the global economic balance.Discussion at Kazan BRICS conferenceThe issue of BRICS Bridge is a major focus of the BRICS summit being held in Kazan. It is expected that this system will be finalized, which will start a new revolution in trade and financial transactions between member countries.Global impactIf the BRICS Bridge is successful, it can become a new model for developing countries. Other countries can also try to avoid Western financial pressure and sanctions by adopting it. This can have a big impact on the global economic system.BRICS Currency: An Alternative to Dollar?The possibilities of launching a new BRICS currency through the BRICS Bridge have also increased. Its purpose is to challenge the dominance of the dollar and establish a new multilateral currency system. If this plan succeeds, the role of the dollar in mutual trade between BRICS countries may gradually decrease. This is likely to bring about significant changes in the global financial system.ConclusionIn this BRICS conference being held in Kazan, new financial arrangements like the BRICS Bridge can bring about a big change in the global financial structure. The system being developed by the BRICS countries aims to reduce dependence on the dollar and promote economic cooperation independent of political sanctions. If the BRICS Bridge succeeds, it can change the global economic balance and become an inspiration for other developing countries.