Alexander Babakov, Deputy Chairman of the Russian State Duma, highlighted the need to create a BRICS equivalent to the SWIFT messaging system, which routes payments alongside the current banking infrastructure. Babakov emphasized that this new system would help to reduce the dependence on Western institutions and simplify settlements outside the dollar-dominated system.
BRICS SWIFT Equivalent Needed for Autonomous Payments, Russian State Duma Deputy Chairman States
Alexander Babakov, Deputy Chairman of the Russian State Duma, specified the benefits of creating a BRICS-based counterpart to the SWIFT banking messaging system. Babakov highlighted that a native banking interconnection messaging system would allow the development of native rails, freeing trade and settlements out of the Western dollar-denominated system.
Babakov believes this will help the African continent escape its neocolonialist state due to the lack of financing from Western banks and funds. According to TASS, the official Russian news Agency, Babakov stated:
The financial agenda of the BRICS has a main initiative for building a new economic reality that solves both major tasks – creating our own financial messaging system for the BRICS countries, similar to SWIFT.
SWIFT is the current de facto standard for routing money across banks all around the world. Nonetheless, SWIFT complies with European Union sanctions on the Russian economy, affecting the payment channels of Russia with all BRICS bloc nations, including Brazil, Russia, India, China, South Africa, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
This new system of financial institutions will have to be compatible with the existing system of each of the countries. In the same way, it must present a “high level of security and data protection to prevent cyber-attacks and unauthorized access to financial information,” Babakov stressed.
Countries like Iran have already requested a higher integration between the payment systems of BRICS nations after having finalized integration with the Russian Mir payment system. India would be leaning towards supporting this integration.