BRICS Bridge: what is it for and what problems will it solve?
Deputy Minister of Finance Ivan Chebeskov said that the BRICS Bridge will be used for settlements in national currencies. Including in digital ruble, Chinese yuan and Iranian rial.
Thanks to this platform, the BRICS countries will be able to carry out transactions directly, reducing their dependence on international payment systems. This will also reduce the risks of sanctions pressure.
In 2024, Egypt, Ethiopia, Iran and the United Arab Emirates joined BRICS. According to government officials, this makes the BRICS Bridge platform even more significant. In total, the organization includes nine countries, and another 29 states are showing interest in joining.
As Alexey Dolmatov, a member of the General Council of Business Russia, noted, now payments between Russia and the countries of Southeast Asia are often blocked.
Platform launch
Some countries are already testing digital national currencies. Russia plans to introduce the digital ruble into mass circulation in 2025–2027. China began testing a digital yuan in 2020, and Iran launched a digital rial in June 2024.
However, BRICS members are also discussing other options for cross-border ones. So, there is a possibility that countries can develop a single digital currency. Its rate can be linked to a basket of currencies of all countries included in the group.
To start the BRICS Bridge, it is necessary for all BRICS countries to make changes to their legislation. Test transactions could begin as early as 2025. According to experts, the first participants in testing the new platform will be Russia, China and India.
Wider implementation of the BRICS Bridge will take at least two years. During this time, states plan to develop conversion mechanisms and various business processes.
Earlier, the head of the Cabinet of Ministers of Kyrgyzstan proposed using a special currency for mutual settlements with Russia, the rate of which would be pegged to gold. This will help avoid dependence on the dollar.
