Is BRICS about to launch a single currency, similar to the Euro? The possibility of a BRICS currency has been a hot topic, fueled by the bloc's ambition to reshape the global economic landscape. While the idea is gaining traction, significant hurdles remain. One driver for this potential move is the BRICS countries' desire to lessen their reliance on the US dollar. Experts highlight the ongoing efforts by the BRICS countries to reduce their dependency on the US dollar as the global reserve, a concept known as de-dollarisation. However, they also cast doubt whether the process of de-dollarisation can be easily achieved.

A key piece of this puzzle is the development of alternative payment systems. The new BRICS payment system, primarily initiated by China and Russia, also known as “BRICS Pay,” is a planned independent and decentralized payment messaging system. This initiative aims to facilitate cross-border transactions within the BRICS nations and potentially beyond, bypassing the SWIFT system dominated by Western economies. This new system is designed to bypass potential sanctions and facilitate trade in local currencies.

The creation of a single BRICS currency presents complex challenges. Coordination on monetary policy, diverse economic structures, and varying levels of economic development amongst BRICS nations pose significant obstacles. The Eurozone, while successful in many aspects, also illustrates the complexities of managing a single currency across multiple sovereign states. Therefore, while the vision of a BRICS currency holds considerable appeal, its realization is likely a long and intricate process, marked by ongoing development of systems like BRICS Pay to initially circumvent the USD for transactions.