Amid great debates and high expectations for developing an economic clout, the BRICS (Brazil, Russia, India, China, and South Africa) and their allies are excitedly awaiting the introduction of a new currency and the creation of a new payment system at the forthcoming October 2024 summit in Kazan, Russia.

Following accepted procedures, Russia took over the one-year presidency of the BRICS on January 1, 2024. Over 250 activities scheduled under Russia’s presidency will lead to the BRICS conference in Kazan in October 2024. From its inception in 2006, BRICS have had two eras of expansion. In 2011 South Africa joined the original group in addition to China, Russia, India, and Brazil. On January 1, 2024, Ethiopia, Egypt, Iran, Saudi Arabia, and the United Arab Emirates became the five new official members of BRICS.

The BRICS have spent the previous several months delving deeply into the importance of their reformed procedures and a balanced approach for reestablishing the world’s dollar-based monetary system to clear their common determination to attain these economic policy goals.

The BRICS have spent the previous several months delving deeply into the importance of their reformed procedures and a balanced approach for reestablishing the world’s dollar-based monetary system to clear their common determination to attain these economic policy goals.

Acknowledging the close working links among members, BRICS has been constantly communicating and collaborating with a like-minded coalition of allies and global corporate players to show its readiness for a historic collective decision on this, which is expected in couple of months. Several initiatives under Russia’s BRICS leadership have made great progress toward their objectives in line with the values and resolutions adopted during the XV BRICS conference in South Africa.

Over the last several months, there has been a lot of back-and-forth on these economic projects; yet the strategic ideas for their future expansion with the inclusion of emerging countries from the Global South remain unchangeable. There is a massive information campaign in progress meant to distribute the reputations of the US and Europe. This implies that the 2006-formed “informal alliance” BRICS has attracted interest from some strong countries becoming increasingly unhappy with western supremacy.

Data recorded by reliable international media shows that more than thirty countries have indicated they want to be BRICS members. Acknowledging the increased desire, Russian Foreign Minister Sergey Lavrov noted that “the modalities of ascension have to be collectively discussed” at further summits, even if during Russia’s leadership the integration of additional new members into BRICS has been stopped.

Chairman of an expert council tasked with running Russia’s presidency; Viktoria Panova claimed that the upcoming summit—the final one under Russia’s BRICS leadership—would mostly concentrate on establishing a unified payment system. There are present projects to create a financial payment system to help the BRICS countries cooperate while maintaining their freedom in trade and economic ties. The expert, who was cited by the local Russian media, said that this is top priority as everyone in the group finds it important.

There is a massive information campaign in progress meant to distribute the reputations of the US and Europe.

Reports late in July revealed that the BRICS nations had developed a system like SWIFT, the worldwide financial messaging network blocked as part of the sanctions imposed on Russia after its invasion of Ukraine. The cornerstone of the method will be the BRICS Bridge international payment system. Transactions will take place using the currencies of the BRICS members, the New Development Bank acts as a clearinghouse and integration tool. As Panova pointed out, however, it is as important to consider how the recently joined BRICS countries will interact with the New Development Bank.

As the BRICS group aims to challenge the US dollar’s dominance as the world’s main currency, the creation of a payment system has taken front stage on their priorities. The financial project is supposed to present itself at the pinnacle of 2024. What is informally known as the BRICS Bridge has received support for a variety of reasons and suggestions to evade the West-dependent SWIFT system. Once the US dollar is in use, developing countries—especially those in the Global South—may be able to wean themselves off it and maybe even promote the use of their own national currency in trade dealings.

Four countries — Bangladesh, the UAE, Uruguay, and Egypt — have joined the New Development Bank (NDB), which its members established in 2015 to rival the current international financial institutions. Originally, the members of the BRICS alliance are South Africa, Brazil, Russia, India, and China. Ever since the NDB was established, policymakers have been wondering about its operations since, unlike more obvious multilateral financial institutions like the World Bank and the International Monetary Fund, little is known about it and its skeletal organizational structure and limited investment profile.

From its founding to the present, as the NDB enters its second decade, scholarly debates and research on the BRICS Bank have been underdeveloped. Released in July by Boston University’s Global Development Policy Center scholar Gregory T. Chin, “The ‘New’ New Development Bank: A Decade Plus in the Making” generated many questions. Among the very legitimate questions are those about the uniqueness of the NDB’s leadership and program as well as its achievements over the last ten years, especially in connection to its present concentration on de-dollarization and multipolarity.

Once the US dollar is in use, developing countries—especially those in the Global South—may be able to wean themselves off it and maybe even promote the use of their own national currency in trade dealings.

The prospect of adding members to the NDB raises the issue of why. Though South Africa was not initially included in O’Neill’s first formulation—which focused on Brazil, Russia, India, and China—he revisits the notion of the “BRICs,” a label he devised, for this collection. Like the issue of the BRICS expansion, O’Neill argues, the NDB membership expansion process and criteria must be worked out.

They also must agree on the admission standards, which must be related to a redefining of particular aims and communal objectives. They also require a well-defined scope of activity and value-added as they will be working together eventually. O’Neill argues that if the main petro-states in the Middle East and Gulf joined the NDB in 2023, it would support the bank’s efforts to encourage the use of local currencies.

Considering the original intent of the BRICS countries in establishing the NDB—to increase its worldwide visibility and presence, to seek out new approaches that advance a developmental agenda in the South—in terms of membership growth, regional offices, outreach, and partnerships, or in terms of the more concrete objectives of encouraging the use of local currencies, combating climate change and environmental protection, and promoting sustainable infrastructure and renewable energy—it is reasonable to question whether the members and upper management have been courageous enough in their efforts to build up the bank.

Professionals attending a separate webinar meeting in Geneva, Switzerland, agreed that digitizing the economy involves several moving components. Among these were the requirement of early establishment of rules and simplification of procedures. Using common market definition techniques to digital markets may be challenging as they are typically more creative and dynamic than traditional ones. One of the issues in handling digital marketplaces is this.

They also require a well-defined scope of activity and value-added as they will be working together eventually.

Although the BRICS alliance is currently very unofficial, as the membership count rises it is beginning to operate more actively. The more it evolves, the more real-world problems and conflicts surface. Although the BRICS nations have united on the need of consumer welfare standards and other basic rules, analysts have noted clear disparities even in this regard.

The governments of several countries, like Brazil, Russia, China, and South Africa, admit other objectives such ensuring economic freedom or a level playing field for small and medium-sized businesses. Some kind of development in more complex legal standards for assessing abuse of power might help to reach these goals. This covers the issue of antitrust control, which both national governments and many interstate organizations may have.

As the BRICS economies grow, several analysts—including Victor Oliveira Fernandes of the Brazilian Administrative Council for Economic Defense (CADE), Alexey Ivanov of the BRICS Competition Law and Policy Center, Deni Mantzari of the University College of London, and others—have observed that their strategies toward competition policy should reflect that.

Still, there are other important issues like a new antitrust-based approach for internet economy regulation. It is important to underline, nonetheless, that combating the violations of fair competition rules by global monopolists in local markets calls for cooperation exactly within the framework of supranational institutions.

Still, the group’s first concern is developing fresh assessment criteria and standards. CADE Commissioner Victor Oliveira Fernandes mentioned in his presentation that their company has already created many new metrics to characterize the platform industry. These include lack of openness, control of significant information, influence over choice via online platform design, and the ability to unilaterally impose conditions—as an indication of negotiating power.

The BRICS Bridge would have an expected impact because most BRICS members have openly expressed their support for a de-dollarization plan or process—a sad destiny for the Western currency—as well as for unilateral trade.

Several academics and policy analysts and some BRICS members confirmed to the author of this article in separate interviews carried out in early August that the evolution of the BRICS payment platform has reached a major stage and, if continuing as planned, would lead to a worldwide explosion. The BRICS Bridge would have an expected impact because most BRICS members have openly expressed their support for a de-dollarization plan or process—a sad destiny for the Western currency — as well as for unilateral trade. Over time, however, it might increase overall trade and — more importantly — solidify fresh bonds between the members of associations.