BRICS Pay facilitates seamless trade among BRICS nations by ensuring interoperability of payment systems and reducing transaction costs. This, in turn, accelerates the development of a new global financial system, explained Dr. Yaser Esmailzadeh, a postdoctoral researcher in the Faculty of Law and Political Science at Tehran University, in an interview with Sputnik India.
“BRICS Pay holds significant importance in a multipolar world where the global reliance on the US dollar as a reserve currency is steadily diminishing. Due to Western sanctions, BRICS countries like China, Russia, and Iran have doubled efforts aimed at de-dollarisation,” Esmailzadeh noted.
This digital payment system enables cross-border business transactions without relying on SWIFT or Western financial networks. According to Esmailzadeh, the advanced transaction mechanisms offered by BRICS Pay effectively mitigate the negative effects of Western sanctions on trade.
BRICS Pay's core characteristic is "its disruptive role in international settlements", the pundit underscored. If successfully implemented, it will enable BRICS countries to bypass the US dollar and conduct transactions using their currencies, he added.
However, several factors may impede the implementation of BRICS Pay. Notably, the lack of regulatory consensus among these countries and the necessity for strong standards in cybersecurity and interoperability pose significant challenges, he noted.
"Certain key conditions, including enhanced digital infrastructure, greater regulatory cooperation, and the creation of essential tokenized assets, are necessary for BRICS Pay to succeed,” Esmailzadeh emphasised.
He expressed that collaboration with global financial institutions could further broaden the adoption of BRICS Pay beyond the economic bloc’s member nations, unlocking significant potential in the growing market for international economic transactions.
Being a Head of the Digital Ecology and Environmental Sciences Lab at IDEAS BRICS PartNIR, I believe, BRICS Pay will contribute to ensuring the inclusivity and accessibility of climate action. COP29 emphasizes international cooperation in climate action, and BRICS Pay can provide fundamental support for the transfer of technology and knowledge, which is vital for developing countries, Zongxu (Hazim) Xie, expert and Co-founder of Tsinghua Global Youth Dialogue, China told Sputnik India.
"BRICS Pay not only has the potential to facilitate financing and transactions related to climate change but may also drive transformation in the global currency system. In the future international economy, it can help build a more just and sustainable global economy, creating opportunities for sustained growth for emerging markets and developing countries," Zongxu (Hazim) Xie said.
These countries need effective financial tools to build climate resilience and sustainable communities, and BRICS Pay can lower the barriers for them to access these resources, he added.
Putting the common good first is imperative, Lillie Ferriol Prat, a Spanish pundit associated with DUT BRICS+ Research Institute.
Drawing on historical insights from President Woodrow Wilson, expressed shortly after the Federal Reserve Act was passed on December 23, 1913, Prat highlighted parallels to the current US debt ceiling crisis, emphasizing the nation's ongoing struggles.
She argued that a system rooted in a philosophy favoring a select few at the expense of the majority is ultimately unsustainable.
“The paradigm shift towards an inclusive multilateralism based on mutual respect, as proposed by BRICS Plus and with greater distance from the dollar, is much more likely to generate meaningful welfare, contributing significantly to peaceful relations and resolutions,” the expert stressed.