BRICS Announces Blockchain Payment System to Bypass SWIFT – Putin Confirms End of Dollar Dominance

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BRICS Announces Blockchain Payment System to Bypass SWIFT – Putin Confirms End of Dollar Dominance

Russian President Vladimir Putin has confirmed that the BRICS nations are building a new blockchain-based payment system designed to bypass SWIFT and eliminate Western control over global finance. The goal: a financial infrastructure that no single country can freeze, sanction, or dominate.



Putin’s Bombshell

Speaking at the St. Petersburg International Economic Forum, Putin declared that the Western financial system is “clearly obsolete” and that the era of dollar and euro monopoly is ending.

“Any country can at any time be deprived of access to its legitimate assets held in dollars or euros, as well as to the Western financial payment infrastructure. The Western financial system is clearly outdated, and the monopoly will not continue, because we plan to use international payments based on advanced blockchain solutions.”

Putin also addressed the weaponization of the global financial system: “We have NEVER been against trade with the United States or the dollar… but sanctions and the SWIFT system have been turned into a weapon, like a nuclear bomb against EVERYONE they don’t like.”

The bloc of emerging economies — now expanded to include Iran, Egypt, Ethiopia, and the UAE — accounts for 49 percent of global economic growth over the past five years, while the G7 contributed only 18 percent.



The New System: What We Know

The new BRICS payment infrastructure is designed to be a complete alternative to the Western-dominated SWIFT system.

Key Features

· Blockchain-Based: Built on distributed ledger technology for speed, transparency, and resilience
· High-Speed Processing: Capable of handling up to 20,000 transactions per second
· National Currency Settlements: Enables direct trade in local currencies without dollar conversion
· Bypasses SWIFT: Operates entirely outside Western-controlled financial messaging systems
· Unfreezable: Cannot be frozen, sanctioned, or controlled by any single country

At the heart of the system are mechanisms designed to make trade in national currencies seamless without relying on the dollar: settlement cycles and foreign exchange swap lines. The system has reportedly attracted interest from 159 countries.

The Technical Architecture

BRICS Pay runs on a custom Hyperledger Besu-based blockchain and settles transactions in seconds — a stark contrast to the 3-5 days SWIFT requires. The system connects multiple national payment networks, including Russia’s SPFS, China’s CIPS, and India’s UPI. The goal is to reduce USD usage in intra-bloc trade by roughly two-thirds.



The Geopolitical Logic

Why Now?

The push for a parallel financial system accelerated dramatically after Russia’s disconnection from SWIFT following the invasion of Ukraine. Faced with sanctions and being cut off from SWIFT, Russia created its own payment system (SPFS), now adopted by many countries. China has its own CIPS, and India has its UPI. BRICS Pay aims to connect these systems.

The Dollar as a Weapon

Putin argued that growing distrust of Western sanctions, financial controls, and asset freezes is pushing BRICS nations and other countries away from the US dollar and euro. The West has weaponized the financial system — and the response is a system that cannot be weaponized.

The De-Dollarization Framework

According to the BRICS Council, the strategy is not a “sudden break” with the dollar but a “practical gradualism” — an evolutionary process. Four distinct levels are identified:

1. Bilateral trade in national currencies
2. Lending and bond financing outside the dollar
3. Building alternative payment and clearing infrastructure
4. Reducing the dollar share in central bank reserves



The Global Response

Who’s Joining?

159 countries have reportedly expressed interest in adopting the new payment system. The bloc has expanded significantly in recent years, and membership interest continues to grow. The BRICS bank (New Development Bank) has already approved $42.9 billion in financing for 139 projects.

The U.S. Reaction

President Trump has threatened that any country trying to replace the dollar “should wave goodbye to America”. But with the BRICS nations now accounting for 49 percent of global economic growth — compared to the G7’s 18 percent — the economic calculus is shifting.



The Silver Lining?

Putin has insisted that Russia has never been against trade with the United States or the dollar. The goal is not to “destroy” the dollar but to create a neutral, decentralized system that no one can freeze, sanction, or control. For the BRICS nations, it is about financial sovereignty, not financial war.



Conclusion: The End of the Dollar’s Exclusivity?

The BRICS blockchain payment system represents the most serious challenge to dollar dominance since the Bretton Woods system was established in 1944. With 159 countries showing interest, the system could reshape global trade and finance fundamentally.

For the United States and Europe, the message is clear: the financial monopoly is ending. Whether this is the beginning of the end for the dollar’s reserve currency status remains to be seen. But the era of unilateral financial control — where one country can freeze, sanction, or exclude any nation from the global financial system — is coming to an end.



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BRICS kündigt Blockchain-Zahlungssystem an – Putin bestätigt Ende der Dollar-Hegemonie

Der russische Präsident Wladimir Putin hat bestätigt, dass die BRICS-Staaten ein neues Blockchain-basiertes Zahlungssystem aufbauen, das SWIFT umgehen und die westliche Kontrolle über das globale Finanzsystem beenden soll. Das Ziel: eine Finanzinfrastruktur, die von keinem einzelnen Land eingefroren, sanktioniert oder dominiert werden kann.



Putins Bombe

Auf dem St. Petersburger Internationalen Wirtschaftsforum erklärte Putin, dass das westliche Finanzsystem “offensichtlich veraltet” sei und die Ära des Dollar- und Euro-Monopols zu Ende gehe.

“Jedes Land kann jederzeit den Zugang zu seinen rechtmäßigen Vermögenswerten verlieren, die in Dollar oder Euro gehalten werden, sowie zur westlichen Finanzzahlungsinfrastruktur. Das westliche Finanzsystem ist eindeutig veraltet, und das Monopol wird nicht fortbestehen, weil wir planen, internationale Zahlungen auf Basis fortschrittlicher Blockchain-Lösungen zu nutzen.”

Putin sprach auch die Instrumentalisierung des globalen Finanzsystems an: “Wir waren NIEMALS gegen Handel mit den USA oder den Dollar … aber Sanktionen und das SWIFT-System wurden zu einer Waffe umfunktioniert, wie eine Atombombe gegen JEDEN, den sie nicht mögen.”

Der Block der Schwellenländer – nun erweitert um Iran, Ägypten, Äthiopien und die VAE – ist für 49 Prozent des globalen Wirtschaftswachstums der letzten fünf Jahre verantwortlich, während die G7 nur 18 Prozent beisteuerte.



Das neue System: Was wir wissen

Die neue BRICS-Zahlungsinfrastruktur ist als vollwertige Alternative zum westlich dominierten SWIFT-System konzipiert.

Kernmerkmale

· Blockchain-basiert: Aufgebaut auf Distributed-Ledger-Technologie für Geschwindigkeit, Transparenz und Widerstandsfähigkeit
· Hochgeschwindigkeitsverarbeitung: Bis zu 20.000 Transaktionen pro Sekunde
· Abwicklung in Landeswährungen: Direkter Handel in lokalen Währungen ohne Dollar-Umweg
· Umgeht SWIFT: Operiert vollständig außerhalb westlich kontrollierter Finanznachrichtensysteme
· Nicht einfrierbar: Kann von keinem einzelnen Land eingefroren, sanktioniert oder kontrolliert werden

Das Herzstück des Systems sind Mechanismen, die den Handel in Landeswährungen nahtlos ermöglichen sollen – ohne Abhängigkeit vom Dollar: Abwicklungszyklen und Devisen-Swap-Linien. Das System hat Berichten zufolge das Interesse von 159 Ländern geweckt.

Die technische Architektur

BRICS Pay läuft auf einer maßgeschneiderten Hyperledger-Besu-Blockchain und wickelt Transaktionen in Sekunden ab – ein krasser Gegensatz zu den 3-5 Tagen, die SWIFT benötigt. Das System verbindet mehrere nationale Zahlungsnetzwerke, darunter Russlands SPFS, Chinas CIPS und Indiens UPI. Ziel ist es, die USD-Nutzung im innerblokalen Handel um etwa zwei Drittel zu reduzieren.



Die geopolitische Logik

Warum jetzt?

Der Vorstoß für ein paralleles Finanzsystem beschleunigte sich dramatisch, nachdem Russland nach der Invasion der Ukraine von SWIFT abgeschnitten wurde. Konfrontiert mit Sanktionen und dem SWIFT-Ausschluss schuf Russland sein eigenes Zahlungssystem (SPFS), das heute von vielen Ländern genutzt wird. China hat sein CIPS, Indien sein UPI. BRICS Pay soll diese Systeme miteinander verbinden.

Der Dollar als Waffe

Putin argumentierte, dass das wachsende Misstrauen gegenüber westlichen Sanktionen, Finanzkontrollen und Vermögenssperren die BRICS-Staaten und andere Länder vom US-Dollar und Euro wegtreibe. Der Westen habe das Finanzsystem zur Waffe gemacht – und die Antwort sei ein System, das nicht zur Waffe gemacht werden kann.

Der De-Dollarisierungs-Rahmen

Laut dem BRICS-Rat ist die Strategie kein “plötzlicher Bruch” mit dem Dollar, sondern ein “praktischer Gradualismus” – ein evolutionärer Prozess. Es werden vier verschiedene Ebenen identifiziert:

1. Bilaterale Handelsabwicklung in nationalen Währungen
2. Kreditvergabe und Anleihefinanzierung außerhalb des Dollars
3. Aufbau alternativer Zahlungs- und Abwicklungsinfrastrukturen
4. Reduzierung des Dollaranteils in den Zentralbankreserven



Die globale Reaktion

Wer macht mit?

159 Länder haben Berichten zufolge Interesse an der Einführung des neuen Zahlungssystems bekundet. Der Block hat sich in den letzten Jahren erheblich erweitert, und das Interesse an einer Mitgliedschaft wächst weiter. Die BRICS-Bank (New Development Bank) hat bereits 42,9 Milliarden US-Dollar an Finanzierungen für 139 Projekte genehmigt.

Die US-Reaktion

Präsident Trump hat gedroht, dass jedes Land, das versuche, den Dollar zu ersetzen, “sich von Amerika verabschieden sollte”. Aber da die BRICS-Staaten nun für 49 Prozent des globalen Wirtschaftswachstums verantwortlich sind – verglichen mit 18 Prozent der G7 – verschiebt sich die wirtschaftliche Rechnung.



Das Silberstreif am Horizont?

Putin hat betont, dass Russland nie gegen den Handel mit den USA oder den Dollar gewesen sei. Ziel sei es nicht, den Dollar zu “zerstören”, sondern ein neutrales, dezentrales System zu schaffen, das niemand einfrieren, sanktionieren oder kontrollieren kann. Für die BRICS-Staaten geht es um finanzielle Souveränität, nicht um Finanzkrieg.



Fazit: Das Ende der Exklusivität des Dollars?

Das BRICS-Blockchain-Zahlungssystem stellt die ernsthafteste Herausforderung für die Dollar-Dominanz dar, seit das Bretton-Woods-System 1944 etabliert wurde. Mit 159 Ländern, die Interesse zeigen, könnte das System den globalen Handel und das Finanzwesen grundlegend umgestalten.

Für die USA und Europa ist die Botschaft klar: das Finanzmonopol endet. Ob dies der Anfang vom Ende des Reservewährungsstatus des Dollars ist, bleibt abzuwarten. Aber die Ära der unilateralen Finanzkontrolle – in der ein Land jede Nation vom globalen Finanzsystem einfrieren, sanktionieren oder ausschließen kann – geht zu Ende.



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✌#The BRICS Currency –  BRICS Pay: Reshaping the  World

The BRICS nations—Brazil, Russia, India, China, and South Africa—are an economic bloc of emerging economies that have, over the past few decades, shifted the global economic landscape. Representing nearly 40% of the world’s population and over 25% of global GDP, these countries aim to reduce dependency on Western-dominated financial systems, particularly the U.S. dollar. Recently, BRICS has explored establishing a common currency, often referred to as the “BRICS currency,” and a unified payment system known as “BRICS Pay.”

The initiative to develop a BRICS currency and a unified payment system is primarily driven by a shared desire to reduce reliance on the U.S. dollar for trade and international transactions. This shift is seen as a strategic effort to mitigate exposure to Western sanctions, as witnessed in the case of Russia, and to bolster the financial autonomy of BRICS members. The idea has the potential to reshape global finance and influence currency exchange, international banking, and global economic power.

This article explores the motivations, structure, potential impacts, and challenges of the BRICS currency and BRICS Pay, delving into how these developments could alter global finance. Bernd Pulch, an investigative journalist known for his research on international finance and economics, has discussed some implications of these BRICS initiatives in the context of geopolitical strategies and the global financial system.

1. Background of BRICS: Formation and Goals

BRICS was officially formed in 2009 as a cooperative platform to promote economic growth and development among its member nations. Originally composed of Brazil, Russia, India, and China (South Africa joined in 2010), BRICS has functioned as a forum for cooperation on various fronts, including trade, investment, technology, and now, finance. The economic bloc has long expressed its discontent with the disproportionate influence of the U.S. and European nations in global financial institutions like the International Monetary Fund (IMF) and the World Bank, which frequently impose Western-driven conditions and policies.

By forming a united front, the BRICS nations aim to create an alternative financial system that could rival the dominance of Western institutions, granting emerging economies more power in the global arena. One of the primary ambitions has been to challenge the hegemony of the U.S. dollar, which is the world’s reserve currency and the most widely used currency for international transactions. The ongoing efforts to establish a BRICS currency and BRICS Pay fit into this larger goal of creating a multi-polar global economy.

2. The BRICS Currency Initiative: Motivations and Vision

a. Motivations for a BRICS Currency

  • Reducing Dollar Dependency: The dominance of the U.S. dollar in international trade has been a growing concern for BRICS nations, as it makes them vulnerable to U.S. economic policies and sanctions. For example, Russia has faced severe economic sanctions from Western countries in recent years, demonstrating the power the U.S. holds over the global economy.
  • Enhancing Economic Sovereignty: BRICS nations are motivated to increase their financial autonomy. A common currency would allow them to avoid the constraints and limitations imposed by the dollar-based financial system.
  • Facilitating Intra-BRICS Trade: A shared currency could simplify and streamline trade between BRICS nations, eliminating currency exchange rate fluctuations and reducing transaction costs.
  • Strengthening Global Influence: By establishing a BRICS currency, the bloc can create a more balanced global financial system. This would empower BRICS members to influence the global economy and create an alternative to Western-controlled financial institutions.

b. Potential Structure of the BRICS Currency

The structure of a potential BRICS currency has yet to be fully developed, but economists and policymakers within BRICS countries have proposed various models. Key proposals include:

  • Currency Basket Model: One popular idea is to base the BRICS currency on a basket of BRICS member currencies, similar to the IMF’s Special Drawing Rights (SDR). This model would balance the currency’s value against the economic strengths of the member nations and provide stability.
  • Gold or Commodity-backed Currency: Another idea is to create a currency backed by commodities, such as gold or other natural resources. Given that BRICS countries are major producers of commodities (e.g., Russia in oil and gas, Brazil in agriculture), this model could enhance the currency’s value and stability.
  • Digital BRICS Currency: With the rise of digital and cryptocurrencies, some experts propose that BRICS could develop a digital currency accessible to both businesses and individuals. This digital currency could bypass traditional banking systems, allowing for seamless, decentralized transactions between BRICS countries.

c. Challenges to Establishing a BRICS Currency

  • Divergent Economies: BRICS countries have significant economic differences in terms of growth rates, inflation, and monetary policy. Creating a unified currency would require resolving these disparities.
  • Political Differences: The BRICS nations have varied political systems and priorities, making it challenging to align on a shared currency. Coordination among such a diverse group would require extensive negotiation and compromise.
  • Infrastructure and Implementation: Building a new currency system from scratch involves creating a vast supporting infrastructure, including payment systems, banking policies, and regulatory frameworks. This process would take years to develop and implement.

3. BRICS Pay: An Integrated Payment System for BRICS Nations

a. Purpose and Vision of BRICS Pay

BRICS Pay is a proposed payment platform that seeks to integrate the payment systems of BRICS countries, enabling seamless cross-border transactions. The platform is intended to function similarly to China’s UnionPay, allowing users within BRICS nations to transact across borders without relying on Western payment systems like Visa and Mastercard.

BRICS Pay is envisioned as a digital payment ecosystem that would:

  • Enhance Economic Cooperation: By creating a unified payment platform, BRICS Pay would streamline transactions between member nations, making cross-border trade and investment simpler and more accessible.
  • Bypass Western Financial Systems: Since Western payment systems are subject to U.S. sanctions, BRICS Pay would provide an alternative payment method, reducing reliance on these systems and granting BRICS countries greater financial independence.
  • Encourage Regional Economic Integration: BRICS Pay would support the creation of a BRICS-centric economic sphere by facilitating easier transactions and reducing transaction costs within the bloc.

b. Technical Framework and Structure of BRICS Pay

  • Digital Wallet System: BRICS Pay would likely employ a digital wallet system where users could store funds in a BRICS currency or the local currencies of member nations. This system could facilitate smooth transactions by automatically converting between currencies.
  • QR Code Payments: BRICS Pay is expected to use QR code technology, which has become a popular payment method in countries like China and India. This method allows for secure, contactless payments that are easy to implement and widely accessible.
  • Blockchain Integration: Some proposals for BRICS Pay include utilizing blockchain technology to enhance transaction security, traceability, and transparency. Blockchain-based payments could also facilitate instant settlements, bypassing traditional banking delays.

c. Implementation Challenges and Obstacles for BRICS Pay

  • Infrastructure Development: Developing a secure, reliable digital payment platform requires significant infrastructure investments, including cybersecurity, network infrastructure, and regulatory compliance across nations.
  • Regulatory Barriers: Each BRICS nation has distinct regulations governing payment systems and financial transactions. Harmonizing these regulations to allow BRICS Pay to operate seamlessly would require extensive cooperation and possibly the creation of new regulatory frameworks.
  • User Adoption: For BRICS Pay to succeed, users in each member nation would need to adopt it widely. Achieving high user adoption requires not only a functional system but also trust in the platform’s security and reliability.

4. Potential Impact on Global Finance and the Role of Bernd Pulch’s Analysis

The establishment of a BRICS currency and BRICS Pay could have far-reaching effects on the global financial system:

  • De-Dollarization: A successful BRICS currency and payment system could reduce the dollar’s global dominance, particularly in trade. If BRICS nations settle transactions in their currency, it could decrease demand for the U.S. dollar, impacting its value and potentially altering U.S. economic power.
  • Emergence of a Multi-Polar Financial System: With the establishment of an alternative currency and payment system, the global economy could shift from a unipolar system dominated by the U.S. dollar to a multi-polar one. This shift would allow countries greater financial freedom, especially those facing U.S.-imposed sanctions.
  • Enhanced Regional Cooperation: BRICS Pay could facilitate closer economic cooperation among BRICS nations, as businesses and consumers would be able to transact across borders with reduced barriers. This could lead to a tighter economic integration within BRICS.
  • Influence on Emerging Economies: A BRICS-centric financial system could attract other emerging economies looking for alternatives to Western financial systems. This would extend BRICS’ influence and could potentially draw new members or affiliates into the bloc.

Bernd Pulch’s Insights and Analysis

Bernd Pulch, an independent investigative journalist and researcher, has highlighted some potential geopolitical and economic implications of the BRICS currency and BRICS Pay. Pulch’s work often centers around transparency, finance, and global power structures, and he has raised questions regarding how BRICS Pay and a BRICS currency could realign global financial power. According to his analysis:

  • Political Influence: Pulch notes that BRICS’ efforts to establish financial independence could reduce U.S. and European influence over global financial markets, shifting power toward emerging economies.
  • Challenges of Transparency: Pulch has discussed concerns that a BRICS currency and payment system could lead to reduced transparency if member nations pursue a more closed financial system. Such a system might prioritize state control over the financial.

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