20 Countries Embrace Russian Payment System, Move Away from US Dollar

In alignment with the broader de-dollarization goals of the BRICS alliance, 20 nations have embraced the Russian Payment system as part of their efforts to move away from the US dollar. Notably, Russia has indicated that its alternative to the SWIFT system already boasts over 159 foreign participants.

Within the BRICS alliance, challenging the dominance of the Western payment system has been a significant infrastructure focus. Consequently, Russia's System for Transmitting Financial Messages (SPFS) emerges as a potential alternative. This development was disclosed by Russia's Central Bank Governor Elvira Nabiullina during recent BRICS discussions.

Throughout much of 2023, the BRICS economic alliance has been actively pursuing de-dollarization initiatives, particularly due to the impact of Western sanctions on countries like Russia and the newly invited member, Iran. The fear of potential sanctions has also influenced other member nations to seek alternatives, challenging the global prominence of the US dollar.

In response to these efforts, as the BRICS alliance continues to strengthen, 20 countries have now joined the Russian payment system to reduce dependence on the US dollar. The Central Bank governor of Russia shared insights on this development with other BRICS nations.

"Russia has a System for Transmitting Financial Messages (SPFS), which is an alternative to SWIFT. Similar infrastructures exist in some other countries. We are holding discussions on the interaction of such platforms, but here the interest and technical readiness of our partners are important," explained Nabiullina. She further highlighted the nations that have already joined the initiative, including its 159 foreign participants.

SWIFT, an international interbank system facilitating information transmission and payments among 11,000 organizations globally, is being challenged by Russia's alternative, which aims to provide a comparable function without relying extensively on the US dollar. Initiatives such as this, along with the BRICS Pay launched the previous year, are expected to contribute to ongoing de-dollarization efforts in the coming year.