BRICS vs SWIFT

05.11.2025

BRICS vs SWIFT

Context
 BRICS — Brazil, Russia, India, China, South Africa, is building an alternative to the Western-controlled SWIFT system to reduce Dollar dependence, strengthen financial sovereignty, and promote a multipolar global economy.

Understanding SWIFT

Overview:

• Full Form: Society for Worldwide Interbank Financial Telecommunication
   
• Headquarters: Belgium
   
• Function: Provides secure messaging for cross-border bank transactions
   
• Global Reach: 11,000+ institutions in 200+ countries
   

Concerns:

• US/G7 influence dominates SWIFT
   
• Used as a geopolitical tool for sanctions (e.g., Russia 2022, Iran)
   
• Overreliance exposes developing economies to risks
   

BRICS Motivation & De-dollarization

Strategic Goals:

• Reduce reliance on SWIFT and the US Dollar
   
• Promote trade in local currencies
   
• Shield members from unilateral Western sanctions
   

Measures:

• Bilateral trade in national currencies
   
• Diversifying forex reserves
   
• Strengthening regional financial cooperation
   

External Resistance:

• US opposition, including trade threats, reflects concern over loss of financial leverage
   

BRICS Financial Alternatives

1. New Development Bank (NDB): Funds infrastructure in emerging economies, countering IMF/World Bank dominance.
    
2. Local Currency Trade: Enhances resilience against Dollar shocks and US monetary policy.
    
3. BRICS Pay:
    
   • Cross-border platform linking national payment systems
      
   • Enables real-time, secure payments in local currencies
      

Vision: Create a multipolar financial network independent of Western regulation.

Challenges

• Political tensions (e.g., India-China) hinder collaboration
   
• Diverse payment systems complicate integration
   
• Western sanctions discourage alignment
   
• Cybersecurity and standardization remain complex
   
• Sustaining a unified BRICS front is critical
   

Broader Implications

• Moves toward multipolar global finance
   
• Gradual reduction of Dollar dominance
   
• Strengthened strategic leverage for BRICS nations
   

Way Forward

1. Form a BRICS Financial Coordination Council
    
2. Pilot regional projects before full-scale deployment
    
3. Collaborate with Global South partners
    
4. Invest in indigenous digital infrastructure and AI security
    
5. Balance diplomacy to avoid direct Western confrontation
    

Conclusion

BRICS’ alternative to SWIFT signals a major shift in global finance. Despite internal and geopolitical hurdles, BRICS Pay represents the emerging economies’ drive for monetary sovereignty and digital resilience, potentially reshaping the global payment architecture toward a multipolar order.