Brazil's 2025 BRICS plan focuses on payment systems over currency

Brazil, which assumed the BRICS presidency in 2025, is prioritising the development of secure and transparent payment systems rather than pursuing a common BRICS currency.  

This initiative aims to reduce reliance on Western financial networks and the U.S. dollar, promoting financial sovereignty among member nations.  

President Luiz Inácio Lula da Silva announced Brazil's focus on developing fully transparent and secure payment systems during a BRICS Sherpas meeting in Brasilia.  

The initiative is a strategy to strengthen financial infrastructure, enhance economic cooperation within the bloc, and decrease vulnerability and costs associated with existing payment options.  

Instead of a common currency, Brazil is promoting alternatives to the dollar for international trade, facilitating trade exchanges in local currencies.  

This approach seeks to make transactions more efficient and less vulnerable to dollar fluctuations in global markets.  

Brazil is considering adopting its instant payment system (Pix) and expanding the Local Currency Payment System (SML).  

Pix, launched in 2020, has revolutionised digital payments in Brazil and could become a model for interconnecting BRICS payment systems, reducing transaction costs and accelerating financial operations.  

The SML allows direct transactions between Brazil, Argentina, Uruguay, and Paraguay without converting currencies into dollars.  

The BRICS 2025 Summit, scheduled for July 6 and 7 in Rio de Janeiro, will address strengthening trade and economic ties, developing alternative payment systems to stimulate trade without dependence on the dollar, and reforming multilateral institutions.  

Brazil's five goals for its presidency include facilitating trade and investment, regulating artificial intelligence, tackling climate change, cooperation in public health, and institutional development.  

The BRICS is a group formed by Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran.  

BRICS also includes nine partner countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan.