BRICS countries are building new models for cross-border e-commerce. Through initiatives such as the BRICS payroll system and the proposed independent financial infrastructure, BRICS is moving beyond mere participation in the global economy.
BRICS Pay: A secure and cost-effective solution for global digital trade
At the 14th BRICS Trade Ministers Meeting in July 2024, they confirmed this direction, recognizing that “e-commerce has become one of the most important drivers of global economic growth.” BRICS aims to leverage digital trade for economic growth within the group, with the aim of leveraging both B2B and B2C trade and expanding its presence in global e-commerce through a robust, secure and regionally integrated system. and aims to make it a powerful tool for innovation.
The 2024 Kazan Declaration indicates that BRICS countries can trade directly in their own currencies. “We reiterate our commitment to strengthening intra-BRICS financial cooperation (…) We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners,” the declaration states. are.
This change is transformative for small and medium-sized enterprises (MSMEs) within BRICS. The 2023 Johannesburg Declaration emphasized the “key role that MSMEs play in unlocking the full potential of BRICS economies.” BRICS Pay opens the door for MSMEs to more freely participate in cross-border transactions and gives small and medium-sized enterprises access to international markets. The BRICS vision aims to build a secure and trustworthy digital market. As asserted in the Kazan Declaration, “We are determined to further strengthen confidence in electronic commerce and ensure full-fledged protection of the rights of parties to electronic commerce.”
BRICS has built transparency, security, and consumer rights protection into its e-commerce framework. This effort to build trust from the beginning will make cross-border e-commerce more secure and enable businesses and consumers alike to engage in digital transactions with confidence.
BRICS Clear: The Future of Cross-Border Payments in Digital Trade
One of the most innovative aspects of the BRICS strategy is its plan to build an independent financial infrastructure. According to the Kazan Declaration, BRICS is considering “the feasibility of connecting the financial market infrastructure of BRICS countries (…) with an independent cross-border payment and deposit infrastructure, BRICS Clear.” This is the basis of an independent network where BRICS countries can settle transactions directly.
This infrastructure will allow BRICS countries to control their own trade flows without restrictions or fees. BRICS Clear creates a foundation for independent trade that empowers BRICS members to take charge of their own economic futures, and sets an example for emerging markets seeking economic independence.
Supporting this vision is the New Development Bank (NDB), which provides local currency financing and investment tools to help BRICS finance its efforts domestically and strengthen its economic framework. supports the ambitions of The NDB will ensure that BRICS can prioritize regional growth and build resilience from within.
BRICS has proven that an independent financial system can successfully operate alongside an established financial system and shows that there is room for multiple cooperation frameworks in the global economy.
Source: TV BRICS