The contours of the future BRICS payment system are emerging.

In the near future, working groups from new BRICS+ member countries are also expected to join the project.

It is known that the payment system will support SWIFT, CIPS, and SPFS standards. It is expected that settlements between counterparties from different BRICS countries will be conducted in digital currency.

In Russia, many are placing their hopes on this payment system as an alternative to SWIFT.

However, the developers do not have such a goal, as it is not feasible. The system is intended to operate in BRICS countries and other developing nations for settlements in national currencies, likely through conversion via cryptocurrency.

But SWIFT, as it was, will remain the main route for US dollar transactions under the current technical, foreign economic, and geopolitical situation.

Regarding a unified cryptocurrency

For many, it will be news that there are already several cryptocurrencies appealing to a basket of BRICS currencies. Most of them are actually self-proclaimed and have no relation to BRICS financial institutions.

However, there is the BRICS Food Token (BFT) cryptocurrency, issued by the Digital Bank of BRICS, which operates under the auspices of:

• The BRICS Business Council;
• The BRICS Energy Association;
• The Business Club of the Shanghai Cooperation Organization.

This is based on decisions by the leaders of BRICS countries and the Johannesburg Declaration of the 2018 BRICS Summit (point 80 of the memorandum on the joint study of the prospects for using distributed ledger (blockchain) technologies).

BRICS cryptocurrency – BFT BRICS Food Token (BFT)

BFT is intended for use in foreign trade transactions between BRICS and BRICS+ countries for food supply. BFT can be used as a collateral instrument in foreign trade deals and will allow wholesalers to purchase food at discounted rates from food companies participating in the BRICS Food project.

BFT is also the world’s first token associated with purified bottled water.

In the medium term

The Digital Bank of BRICS plans to create an ETF — Exchange-Traded Fund.
The BRICS Food ETF will consist of shares in companies involved in the production of freeze-dried food and bottled water in developing countries and BRICS nations.
The BFT token will become the tokenized ETF of the BRICS Food Fund.

In the latest NASDAQ study

The study on BRICS currency and digital BRICS currency highlights:

What are the advantages of the BRICS currency?

• The new currency may offer several benefits for BRICS countries, including more efficient cross-border transactions and enhanced financial inclusivity.
• By using blockchain technology, digital currencies, and smart contracts, the currency could revolutionize the global financial system.
• Thanks to seamless cross-border payments, it could also promote trade and economic integration between BRICS countries and beyond.

How can investors prepare for the new BRICS currency?

• Diversify currency risks by investing in assets denominated in currencies other than the US dollar, such as bonds, mutual funds, or exchange-traded funds.
• Invest in commodities like gold and silver as protection against currency risk.
• Gain access to BRICS stock markets through shares and ETFs that track BRICS market indices.