BRICS countries are stepping up work on independent payment systems as they seek to reduce reliance on U.S.-dominated financial infrastructure and strengthen financial sovereignty among member states. According to Tass on Feb. 19, Russian Foreign Minister Sergey Lavrov told the State Duma that the initiative is being discussed within BRICS and was originally advanced by Brazilian President Luiz Inácio Lula da Silva.
Lavrov said the previous BRICS summit had already recognized the need to develop proposals for alternative payment platforms, with finance ministries and central banks tasked with moving the process forward. The ideas under discussion include a cross-border payment initiative, a reinsurance company, and the BRICS Clear settlement and depository infrastructure. Together, these proposals are designed to create transaction channels that operate with less dependence on Western financial institutions.
Kazan Declaration Set the Direction
A major milestone came at the 16th BRICS Summit, held in Kazan from Oct. 22 to 24, 2024, during Russia’s chairmanship. It was also the first summit after the bloc’s expansion. Leaders adopted the Kazan Declaration, which formally backed the exploration of alternative payment solutions. The document highlighted the possible creation of an independent cross-border settlement and depository framework, known as BRICS Clear, and instructed finance ministers and central bank governors to continue examining the use of national currencies, payment instruments, and payment platforms.
The language signals a broader effort by BRICS to build financial plumbing outside the traditional Western-centered system. In recent years, member states have increasingly used local currencies in bilateral and multilateral trade, making de-dollarization a practical policy objective rather than only a political slogan.
Payment Platforms Are Not the Same as a Common Currency
The current push for alternative payment platforms is distinct from the idea of a single BRICS currency. Payment infrastructure focuses on enabling cross-border transactions using existing national currencies, while a common currency would require much deeper monetary integration and extensive policy coordination. For now, independent payment rails appear to be the more feasible path, allowing BRICS members to expand economic cooperation without surrendering domestic monetary control.
Based on the proposals discussed so far, the bloc is pursuing a multi-layered strategy centered on payment infrastructure, settlement systems, and broader use of national currencies in trade. If implemented, these mechanisms could gradually reduce BRICS members’ exposure to Western-led financial networks.