BRICS And SCO Unite To Create Integrated Payment Systems

BRICS and SCO are united to create an integrated payment system (Photo; Doc. Crypto Politan)

JAKARTA - BRICS member countries (Brazil, Russia, India, China, and South Africa) and the Shanghai Cooperation Organization (SCO) are making efforts to create an integrated payment system. This initiative aims to increase the use of national currencies in cross-border transactions and reduce dependence on the US dollar, which has been dominated in international trade. In a recent interview, SCO Secretary General Zhang Ming revealed that informal talks on this payment system are ongoing and continuing in a more concrete direction.

Quoted from News Bitcoin, Zhang explained that talks about an integrated payment system have entered a serious phase. "Currently, we are conducting informal discussions to increase the proportion of national currencies in transaction settlement," he said. According to him, at the Samarkand Summit held in 2022, a concept has been adopted to increase the use of local currencies.

SCO, formed in 2001, is a regional alliance that focuses on security, economic collaboration, and political stability among EUrasian countries. SCO members include major countries such as China, Russia, and India. Along with that, BRICS also has a common goal, namely promoting multipolarity and reducing the influence of the Western economy. This move can be seen as part of a broader strategy to create balance in the global order that has been dominated by western countries.

In an effort to build this payment system, a special working group has been formed, consisting of the central bank and the finance ministry of each member state of SCO. Zhang also highlighted the important role of non-governmental institutions in accelerating the implementation of this project. The Interbank SCO consortium is also working on this issue. Of course, this is not an easy task, and we are facing a number of difficulties," he explained. Despite the challenges, Zhang remains optimistic that progress will continue to be achieved.

Zhang stressed the importance of capital, technology and service-free flow in encouraging economic cooperation within the alliance. This statement shows that SCO is not only focused on financial aspects, but also on innovation and technological advances as part of their strategy.

Meanwhile, the BRICS bloc is also exploring a similar goal to BRICS in creating alternative payment systems to reduce dependence on the US dollar. At the BRICS leader summit recently held, discussions focused on developing alternative international payment systems and the possibility of joint digital currency recognition.

This initiative comes at a time when the global financial market is experiencing uncertainty. Many countries, especially those incorporated in BRICS and SCO, feel the need to create a more independent alternative to the financial system dominated by the West. With this step, they hope to increase trade between member countries, while creating better economic stability.