The Brics group, comprising 11 emerging nations, unveiled Brics Pay, a payment system inspired by Brazil’s Pix, aimed at reducing reliance on the U.S. dollar in international trade. Scheduled to launch in 2025, the system will enable fast, secure transfers among Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran using local currencies. Led by Brazil, Russia, and China, the initiative seeks to lower costs and shield against global financial sanctions, fostering economic autonomy. Leveraging technologies like blockchain and QR codes, Brics Pay is in testing but faces U.S. resistance, with threats of retaliatory tariffs.
Brics Pay, also dubbed Pix Global, responds to geopolitical and economic tensions, particularly with the U.S., which dominates global finance through the dollar. Representing 24% of global trade, the Brics bloc aims to streamline commerce and enhance financial sovereignty. The platform eliminates intermediaries like the dollar and euro, promising to transform international transactions.
- Key goals of Brics Pay:
- Reduce international transaction costs.
- Speed up trade settlements.
- Promote local currency use in global trade.
- Protect against external financial sanctions.
The initiative comes as Brics expands from five founding members to 11, adding nations like Indonesia and Saudi Arabia, plus 10 partner countries, boosting its global influence.
Technology-driven payment system
Brics Pay integrates established payment systems like Brazil’s Pix, Russia’s SBP, and India’s UPI. It relies on a decentralized cross-border messaging system (DCMS), developed by Saint Petersburg State University, ensuring secure and rapid transactions via advanced encryption. Unlike the SWIFT system, tied to major Western banks, Brics Pay operates without a central controller, reducing reliance on global financial giants.
Blockchain technology underpins the system, offering transparency and traceability. QR codes and digital wallets will simplify everyday transactions, such as payments during travel or local commerce within Brics nations. For instance, a Brazilian traveler could use Pix to pay in China without converting to dollars.
- Technologies in Brics Pay:
- Blockchain for security and transparency.
- QR codes for instant payments.
- Digital wallets for accessibility.
- Direct channels between central banks for swift settlements.
The system may also incorporate central bank digital currencies, like Brazil’s Drex, enhancing its versatility. By 2030, Brics Pay aims to handle hundreds of billions in annual transactions, positioning itself as a leading platform for emerging economies.
Russia and China lead testing efforts
Russia and China are at the forefront of Brics Pay testing, conducting bilateral transactions in rubles and yuan. Brazil, chairing Brics in 2025, plans to integrate Pix by late 2026, focusing on agricultural and energy exports to partners like China and India. New members, such as Ethiopia and the UAE, are expected to join in the coming years, expanding the system’s reach.
Initial tests show Brics Pay could cut transaction costs by up to 5%, compared to dollar-based operations. Direct settlements in local currencies also reduce exposure to exchange rate volatility, benefiting sectors like Brazil’s agribusiness, a major exporter to Asia.
Technical challenges, such as aligning diverse banking systems, persist, but Brics nations are committed to rapid progress. Russia’s SBP, used by over 200 financial institutions, and India’s UPI, processing billions of transactions yearly, provide a strong foundation for the platform.
U.S. resistance and geopolitical tensions
The U.S., where the dollar anchors 84% of global transactions, views Brics Pay as a threat to its financial dominance. The U.S. president has threatened tariffs of up to 50% on Brics nations’ imports, claiming the system promotes unfair trade practices. Investigations targeting Brazil’s Pix for allegedly undermining U.S. firms like Visa and Mastercard have heightened tensions.
Brazil’s government, under President Luiz Inácio Lula da Silva, has defended its economic sovereignty. At the July 2025 Brics summit, Lula emphasized that Brics Pay fosters fairer trade, not confrontation with the U.S. Leaders like South Africa’s Cyril Ramaphosa echoed this, framing the system as a tool for cooperation.
- Responses to U.S. threats:
- Brazil: Defending economic independence.
- China: Advocating for a multipolar financial system.
- Russia: Seeking alternatives to evade Western sanctions.
- India: Maintaining cautious ties with the U.S.
Experts suggest Brics Pay could attract non-Brics nations seeking lower costs and fewer dollar-related risks. Indonesia, a recent member, is exploring integration of its QRIS system into Brics Pay.
Economic benefits for Brazil
Brazil, the birthplace of Pix, plays a pivotal role in Brics Pay’s development. Launched in 2020, Pix accounted for 49% of non-physical transactions in Brazil in Q1 2025, with a volume of R$7 trillion. This expertise is shaping Brics Pay, particularly for agribusiness exports like soy and beef to China.
Lower transaction costs will enhance the competitiveness of Brazilian goods, while local currency settlements reduce exposure to dollar fluctuations, benefiting businesses and consumers. Brics Pay could also boost tourism, allowing Brazilians to use Pix abroad and visitors to pay seamlessly in Brazil. Integration with Drex, Brazil’s digital currency, will further expand these opportunities.
Reshaping global trade dynamics
Brics Pay marks a bold step toward redefining international trade. Representing 46% of the world’s population and 35.6% of global GDP, Brics has the clout to challenge Western financial dominance. By enabling local currency transactions, the platform sidesteps systems like SWIFT, which often restrict sanctioned nations like Russia and Iran.
The initiative strengthens the Global South’s economic influence. Countries like Ethiopia and Egypt, limited by restricted access to Western financing, see Brics Pay as a pathway to growth without political constraints. However, internal Brics tensions, such as India-China rivalries, could hinder full implementation.
- Potential outcomes of Brics Pay:
- Enhanced export competitiveness.
- Up to 5% reduction in transaction costs.
- Greater economic integration among Global South nations.
- Strengthened role of local currencies in trade.
Over time, Brics Pay could foster a more multipolar financial system, where the dollar faces growing competition. If successful, it may inspire other economic blocs to develop similar platforms, reshaping global trade dynamics.