Amidst a push for a unified global currency, two of the biggest members of BRICS, India and Russia, are reportedly exploring ways to create payment systems that don't rely on the US dollar. External Affairs Minister S Jaishankar and Deputy Prime Minister Denis Manturov have already discussed integrating India's Unified Payment Interface (UPI) and Russia's Faster Payments System (FPS). Both of these are mobile phone-based payment systems that allow users to transfer funds in real-time.

The two government officials have also agreed to look into using the Bank of Russia's Financial Messaging System for cross-border transactions, thereby moving away from the global interbank platform SWIFT. This comes as BRICS (an association of Brazil, Russia, India, China, and South Africa) is attempting to create a new global currency. Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, reportedly stated that they are in talks by the end of the year and could reach an agreement.

The rationale behind BRICS' decision to develop a new global currency is mainly to dodge the US dollar which is falling short in the international arena due to US sanctions. In addition, a unified and global currency would significantly bring down the transaction costs which have been a cause of high international payments for a long time. It would also promote global economic integration as people would not be required to exchange their home currency for the US dollar in order to make a payment abroad.

Not only are the BRICS countries looking to reap the benefits of creating a new unified currency, but it seems as if other countries like Iran and Venezuela who face similar economic conditions and suffer from US sanctions are also keeping an eye out for the project. This might ensure adequate trust and adoption of the new currency.

BRICS's new currency comes with a promise of enormous potential that could potentially reshape the world economy, especially if it is accepted by the majority of nations. It will definitely remain interesting to see if this creates a competitive environment amongst the various world’s currencies while at the same time introducing a more popular and accepted form of global payment option.



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